Perfect Catering Company's ending inventory was $106,700 at historical cost and $113,500 at current replacement cost.Before consideration of the lower-of-cost-or-market rule,the company's cost of goods sold was $60,000.Following U.S.GAAP,which of the following statements reflect the correct application of the lower-of-cost-or-market rule?
A) The Ending Inventory balance will be $106,700,and Cost of Goods Sold will be $60,000.
B) The Ending Inventory balance will be $113,500,and Cost of Goods Sold will be $60,000.
C) The Ending Inventory balance will be $106,700,and Cost of Goods Sold will be $66,800.
D) The Ending Inventory balance will be $113,500,and Cost of Goods Sold will be $53,200.
Correct Answer:
Verified
Q93: The Council of the Blind Store has
Q94: The units of inventory available for sale
Q95: It is the end of the year
Q96: Under the disclosure principle,the inventory accounting method
Q99: The following data was obtained from the
Q100: IFRS defines market value for inventory as
Q100: When applying the lower-of-cost-or-market rules to inventory
Q101: Scott Walker Company has the following data
Q102: A gross profit percentage of 30% means
Q103: The following data are for Steve's Candy
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents