What Would Cutterski Report as Its Cost of Goods Sold

question 64

Multiple Choice

What would Cutterski report as its cost of goods sold under absorption costing?

• A)$6,156,000
• B)$6,885,000
• C)$6,966,000
• D)$8,208,000

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Definitions:

Freight Charges

Costs associated with transporting goods from one place to another, typically paid by the buyer or seller depending on the terms of sale.

Mineral Deposit

A natural concentration of minerals in the Earth's crust that can be mined for economic benefit.