RJ Corporation Has Provided the Following Information About One of Its

question 116

Multiple Choice

RJ Corporation has provided the following information about one of its inventory items: During the year,RJ sold 3,000 units.
-
What was cost of goods sold using the average cost flow assumption?

• A)$11,680,000.
• B)$11,590,000.
• C)$11,480,000.
• D)$11,550,000.

---

Definitions:

Irrelevant Costs

Costs that will not be affected by a decision and therefore should not be considered when making that decision.

Asset

Resources owned or controlled by a business that are expected to provide future economic benefits.

Original Cost

The initial price paid or cost of acquisition of an asset, before any depreciation, amortization, or impairment costs are deducted.

Increased Revenues

A rise in the amount of money a company earns from its business activities over a certain period.