D is corrent. Per ASC Topic 255, cost of goods sold is restated into average current cost by multiplying units sold (70,000) by the average current cost during the year. Average current cost is the current cost at the beginning of the year, plus the current cost at the end of the year, divided by 2.
($58 + $72) ÷ 2 = $65
Therefore, cost of goods sold restated into average current cost is $4,550,000 (70,000 x $65).
A is incorrect. Per ASC Topic 255, cost of goods sold is restated into average current cost by multiplying units sold (70,000) by the average current cost during the year. Average current cost is the current cost at the beginning of the year, plus the current cost at the end of the year, divided by 2.
($58 + $72) ÷ 2 = $65
Therefore, cost of goods sold restated into average current cost is $4,550,000 (70,000 x $65).
A is incorrect. Per ASC Topic 255, cost of goods sold is restated into average current cost by multiplying units sold (70,000) by the average current cost during the year. Average current cost is the current cost at the beginning of the year, plus the current cost at the end of the year, divided by 2.
($58 + $72) ÷ 2 = $65
Therefore, cost of goods sold restated into average current cost is $4,550,000 (70,000 x $65).
A is incorrect. Per ASC Topic 255, cost of goods sold is restated into average current cost by multiplying units sold (70,000) by the average current cost during the year. Average current cost is the current cost at the beginning of the year, plus the current cost at the end of the year, divided by 2.
($58 + $72) ÷ 2 = $65
Therefore, cost of goods sold restated into average current cost is $4,550,000 (70,000 x $65).
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