Multiple Choice
Use the following information for question 102-103.
During its December 31, 2014 year-end inventory count, Jefferson Company failed to count items in transit to which it had legal title. As a result of this error, ending inventory was understated by $30,000.
-As a result of this error, 2014 cost of goods sold will be
A) understated by $30,000.
B) overstated by $30,000.
C) correct.
D) greater when average cost is used.
Correct Answer:
Verified
Correct Answer:
Verified
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