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Wildhorse Company uses the FIFO method to cost its inventory. At December 31, 2025, prior to adjustment, the Finished Goods inventory balance was $37000 and the Cost of Goods Sold balance was $97500. The expected selling price was $44600. The compart incurs selling costs of 25% of the expected selling price. If Wildhorse uses the cost of goods sold method to record write-downs of inventory, its 2025 financial statements will report Balance Sheet Inventory $37000 Inventory $37000 Inventory $44600 Income Statement Cost of Goods Sold $101050 Cost of Goods Sold $97500 Cost of Goods Sold $108650 SUPE

Wildhorse Company uses the FIFO method to cost its inventory. At December 31, 2025, prior to adjustment, the Finished Goods inventory balance was $37000 and the Cost of Goods Sold balance was $97500. The expected selling price was $44600. The compart incurs selling costs of 25% of the expected selling price. If Wildhorse uses the cost of goods sold method to record write-downs of inventory, its 2025 financial statements will report Balance Sheet Inventory $37000 Inventory $37000 Inventory $44600 Income Statement Cost of Goods Sold $101050 Cost of Goods Sold $97500 Cost of Goods Sold $108650 SUPE

FINANCIAL ACCOUNTING
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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x Your answer is incorrect. Wildhorse Company uses the FIFO method to cost its inventory. At December 31, 2025, prior to adjustment, the Finished Goods inventory balance was $37000 and the Cost of Goods Sold balance was $97500. The expected selling price was $44600. The company incurs selling costs of 25% of the expected selling price. If Wildhorse uses the cost of goods sold method to record write-downs of inventory, its 2025 financial statements will report Balance Sheet Inventory $37000 Inventory $37000 Inventory $44600 Income Statement Cost of Goods Sold $101050 Cost of Goods Sold $97500 Cost of Goods Sold $108650 SUPPOR
Transcribed Image Text:x Your answer is incorrect. Wildhorse Company uses the FIFO method to cost its inventory. At December 31, 2025, prior to adjustment, the Finished Goods inventory balance was $37000 and the Cost of Goods Sold balance was $97500. The expected selling price was $44600. The company incurs selling costs of 25% of the expected selling price. If Wildhorse uses the cost of goods sold method to record write-downs of inventory, its 2025 financial statements will report Balance Sheet Inventory $37000 Inventory $37000 Inventory $44600 Income Statement Cost of Goods Sold $101050 Cost of Goods Sold $97500 Cost of Goods Sold $108650 SUPPOR
Inventory $37000 Inventory $37000 Inventory $44600 Inventory $33450 Cost of Goods Sold $101050 Cost of Goods Sold $97500 Cost of Goods Sold $108650 Cost of Goods Sold $101050
Transcribed Image Text:Inventory $37000 Inventory $37000 Inventory $44600 Inventory $33450 Cost of Goods Sold $101050 Cost of Goods Sold $97500 Cost of Goods Sold $108650 Cost of Goods Sold $101050
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