mwillick7
contestada

For the current year, Hodges Department Store reported the following data:
Goods available for sale $1,074,450
December 31, inventory balance 85,430
The current replacement cost of inventory on balance sheet data is $91,730. Using the lower-of-cost-or-market rule, what is the cost of goods sold for Hodges
Department Store?
A. 5897,290
O B. $982.720
C. $989,020
D. $898,060

Respuesta :

abiolataiwo2015

Using the lower-of-cost-or-market rule, what is the cost of goods sold for Hodges is: C. $989,020.

Cost of good sold

Using this formula

Cost of goods sold=Goods available for sale-Inventory balance

Where:

Goods available for sale=$1,074,450

Inventory balance=$85,430

Let plug in the formula

Cost of good sold=$1,074,450-$85,430

Cost of good sold=$989,020

Inconclusion Using the lower-of-cost-or-market rule, what is the cost of goods sold for Hodges is: C. $989,020.

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