During fiscal 2016, Shoe Productions recorded inventory purchases on credit of $337.8 million. Inventory at the start of the year was $38.2 million and at the end of the year was $53.0 million. Which of the following describes how these transactions would be entered on the financial statement effects template? Select one: A. Increase liabilities (Accounts payable) by $323.0 million B. Increase expenses (Cost of goods sold) by $337.8 million C. Increase expenses (Cost of goods sold) by $323.0 million D. Increase noncash assets (Inventory) by $14.8 million E. Both A and C

Question

Business

Angel Mathis

10 January, 21:42

During fiscal 2016, Shoe Productions recorded inventory purchases on credit of $337.8 million. Inventory at the start of the year was $38.2 million and at the end of the year was $53.0 million. Which of the following describes how these transactions would be entered on the financial statement effects template? Select one: A. Increase liabilities (Accounts payable) by $323.0 million B. Increase expenses (Cost of goods sold) by $337.8 million C. Increase expenses (Cost of goods sold) by $323.0 million D. Increase noncash assets (Inventory) by $14.8 million E. Both A and C

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Answers (1)

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Roger Lucas · Answer 1

c) increase expenses (Cost of goods sold) by $323.0 million

Explanation:

the cost of the goods sold can be calculated like that:

beginning inventory $ 38.2

(+) purchases $337.8

(-) ending inventory $ 53

Total $323