Hoover Company Had Beginning Inventory of $15,000 at March 1

question 158

Multiple Choice

Hoover Company had beginning inventory of $15,000 at March 1, 2022.During the month, the company made purchases of $65,000.The inventory at the end of the month is $17,300.What is cost of goods sold for the month of March?

• A)$62,700
• B)$65,000
• C)$80,000
• D)$82,300

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Definitions:

Revaluation Surplus

This is the increase in value of an asset after it has been appraised again and is recorded as a gain in equity under a company's financials.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide the preparation of financial statements globally.

Fair Value

The amount of money one would expect to obtain from selling an asset or the cost incurred to settle a liability, during a structured exchange between parties in the market, as of the valuation date.

Double-Declining-Balance

A method of accelerated depreciation that doubles the normal depreciation rate, reducing the book value of assets more quickly in the early years.