Charles Scrab Inc

question 56

Multiple Choice

Charles Scrab Inc. has beginning inventory of $15,000, purchases of $25,000, and ending inventory of $10,000, sales of $75,000, operating expenses of $30,000, and a tax rate of 40% for 2008. An accounting clerk input the ending inventory as $12,000. What is the effect on 2008 cost of goods sold?

• A)Cost of Goods Sold will be $1,200 higher.
• B)Cost of Goods Sold will be $1,200 lower.
• C)Cost of Goods Sold will be $2,000 higher.
• D)Cost of Goods Sold will be $2,000 lower.

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Definitions:

Sockeye Salmon

A species of salmon found in the Pacific Ocean, known for its red flesh and significant value to both commercial and recreational fisheries.

Market Price

The present cost for purchasing or selling an asset or service within a specific market.

Fishery Identification

The process of classifying and recognizing different fish species, important for managing and conserving fish populations.

Location

The specific place or position where something exists or is situated, often specified in terms of geographical coordinates.