Use the Following Information Regarding Black Company and Red Company

question 73

Multiple Choice

Use the following information regarding Black Company and Red Company to answer the question "Which of the following is Black Company's "cost of goods sold" for 2021 (to the closest dollar) ?" $$\begin{array}{l}\begin{array} { | l | c | c | c | } \hline & \text { Year } & \begin{array} { c } \text { Inventory } \\\text { Turnover }\end{array} & \text { Ending Inventory } \\\hline \text { Black Company } & 2020 & & \$ 26,340 \\\hline & 2021 & 8.7 & \$ 29,890 \\\hline & 2022 & 8.4 & \$ 30,100 \\\hline\\\hline \text { Red Company } & 2020 & & \$ 25,860 \\\hline & 2021 & 7.0 & \$ 24,750 \\\hline & 2022 & 7.5 & \$ 22,530 \\\hline\end{array}\end{array}$$

• A)$252840
• B)$260043
• C)$244601
• D)$260957

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Definitions:

RFQ

A Request for Quotation (RFQ) is a business process in which a company asks external suppliers to offer a quote for the supply of specific goods or services under designated conditions.

Reverse Auction

An auction in which the roles of buyer and seller are reversed, with the seller competing to obtain business from the buyer and prices typically decreasing as the auction progresses.

Disintermediation

Elimination of intermediaries in electronic commerce.

Substitute Products

Products that can serve as replacements for each other; when the price of one product rises, the demand for its substitute may increase.