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Vargas Company uses the perpetual inventory system and the FIFO cost flow method. During the current year, Vargas purchased 4 0 0 units of inventory

Vargas Company uses the perpetual inventory system and the FIFO cost flow method. During the current year, Vargas purchased 400 units of inventory that cost $15.00 each. At a later date during the year, the company purchased an additional 800 units of inventory that cost $18.00 each. Vargas sold 500 units of inventory for $27.00. What is the amount of cost of goods sold that will appear on the current year's income statement?
Multiple Choice
$7,800
$6,000
$4,500
$5,700
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