Lol Company’s inventory account balance on December 31, 2019 was 360,000 and 30,000 of those goods were purchased FOB shipping point and still in transit as of December 31, 2019. Purchases in 2020 were 3,000,000. The perpetual inventory records showed an ending inventory of 420,000 for 2020. A physical count of the goods on hand at the end of 2020 showed an inventory of 380,000. What amount should the company report as cost of goods sold in its 2020 statement of comprehensive income? _______________

Lol Company’s inventory account balance on December 31, 2019 was 360,000 and 30,000 of those goods were purchased FOB shipping point and still in transit as of December 31, 2019. Purchases in 2020 were 3,000,000. The perpetual inventory records showed an ending inventory of 420,000 for 2020. A physical count of the goods on hand at the end of 2020 showed an inventory of 380,000. What amount should the company report as cost of goods sold in its 2020 statement of comprehensive income? _______________

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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