Author Question: Horse Creek Company had beginning inventory of 900,000, purchases of 2,000,000, purchase returns of ... (Read 165 times)

s.tung · **on:** Jul 5, 2018

Horse Creek Company had beginning inventory of 900,000, purchases of 2,000,000, purchase returns of 50,000, ending inventory of 800,000, beginning accounts payable of 200,000 and ending accounts payable of 100,000.

What was the cost of goods sold?
A) 2,050,000
B) 1,950,000
C) 2,150,000
D) 1,900,000

Question 2

Ending inventory is made up of the oldest purchases when a company uses
a. first-in, first-out
b. last-in, first-out
c. average cost
d. retail method