Answer (C) is correct . During the first quarter, direct materials for 27,500 units of output were purchased for $2,200,000, or $80 per output unit ($2,200,000 ¡Â 27,500). GivenAnswer (A) is incorrect because The original pro forma cost of goods sold equals $16,565,000.
Answer (B) is incorrect because The original pro forma cost of goods available for sale is $16,942,000.
Answer (D) is incorrect because The revised pro forma cost of goods available for sale equals $17,760,000.
|
Watson’s revised pro forma cost of goods sold is closest to
