A Corporation Has Provided the Following Information About One of Their

question 7

Multiple Choice

A corporation has provided the following information about one of their products:

$$\begin{array}{ll}\begin{array} { ll } \text { Date } & \text { Transaction } \\1 / 1 & \text { Beginning Inventory } \\6 / 5 & \text { Purchase } \\11 / 10 & \text { Purchase } \\\end{array}\begin{array} { l l} \text { Number of Units } & \text { Cost per Unit } \\200& \$ 140 \\400 & \$ 160 \\100 & \$ 200 \\\end{array}\end{array}$$
During the year,400 units were sold. What is cost of goods sold using the average cost method?

• A)$48,000
• B)$64,000
• C)$50,000
• D)$62,000

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Definitions:

Non-controlling Interest

A financial interest in a subsidiary that is not enough to exert control over its policies, usually shown as a separate element of equity in the consolidated financial statements.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense since the asset was put into use.

Common Shares

A type of equity security representing ownership in a corporation, entitling holders to dividends and voting rights, among other rights.

Non-controlling Interest

An interest in a corporation that is not held by the parent company, representing the share of equity owned by minority shareholders in the subsidiaries of a consolidated group.