Vargas Company uses the perpetual inventory method. Vargas purchased 1,400 units of inventory that cost $15.00 each. At a later date the company purchased an additional 1,800 units of inventory that cost $16.00 each. Vargas sold 1,500 units of inventory for $19.00. If Vargas uses a FIFO cost flow method, the amount of cost of goods sold appearing on the income statement will be:

Multiple Choice

• $22,600.

• $5,900.

• $21,000.

• $4,500.