Business, 07.04.2020 03:20 sarahparah002
Perfect Catering Company's ending inventory was $103,700 at historical cost and $111,500 at current replacement cost. Before consideration of the lower-of-cost-or-market rule, the company's cost of goods sold was $62,000. 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 $111,500, and Cost of Goods Sold will be $62,000.B. The Ending Inventory balance will be $103,700, and Cost of Goods Sold will be $62,000.C. The Ending Inventory balance will be $111,500, and Cost of Goods Sold will be $69,800.D. The Ending Inventory balance will be $111,500,and Cost of Goods Sold will be $54,200.
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Perfect Catering Company's ending inventory was $103,700 at historical cost and $111,500 at current...
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