The Following Information Is Available for Superior Company for 2014

question 71

Multiple Choice

The following information is available for Superior Company for 2014:

What amount should Superior report as cost of goods sold for 2014?

• A)$510,000
• B)$550,000
• C)$610,000
• D)$650,000

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Definitions:

Physical Count

An actual count of merchandise or inventory on hand, often conducted at the end of an accounting period to verify the accuracy of records.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Net Realizable Value

Net Realizable Value is the estimated selling price of goods, minus the estimated costs of completion and necessary selling costs, used for inventory valuation and accounts receivable.

Inventory

The merchandise and supplies a company maintains with the end purpose of selling or manufacturing.