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
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3716796-d3ee-49ce-9a37-0a767a20be97%2F2a3c69b7-c6da-4e05-a97c-033cb8b189a7%2Fksfad76_processed.jpeg&w=3840&q=75)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3716796-d3ee-49ce-9a37-0a767a20be97%2F2a3c69b7-c6da-4e05-a97c-033cb8b189a7%2Fowba5g_processed.jpeg&w=3840&q=75)
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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