Consider the following data Ending inventory at cost --- $115,000 Ending inventory at replacement cost ----- $119,000 Cost of goods sold (before consideration of LCM rule) --- $165,000 Which of the following depicts the proper account balance after the application of the LCM rule? A. Ending inventory balance will be $119,000 B. Ending inventory balance will be $115,000 C. Costs of goods sold will be $161,000 D. Cost of goods sold will be $169,000

Consider the following data Ending inventory at cost --- $115,000 Ending inventory at replacement cost ----- $119,000 Cost of goods sold (before consideration of LCM rule) --- $165,000 Which of the following depicts the proper account balance after the application of the LCM rule? A. Ending inventory balance will be $119,000 B. Ending inventory balance will be $115,000 C. Costs of goods sold will be $161,000 D. Cost of goods sold will be $169,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 10PA: Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company,...

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