In Year 1 and Year 2, Basilisk Manufacturing reported its gross margin as follows: Basilisk Manufacturing Partial Income Statement Year 1 Year 2 Sales $6,720,000 $7,340,000 Cost of goods sold 3.001,600 3,538,400 Gross margin 3,718,400 3,801,600 In Year 3, Basilisk Manufacturing changed its inventory valuation method. If the new inventory method had been used in Year 1 and Year 2, cost of goods sold would have been less by $100,000 in Year 1 and by $140,000 in Year 2. In the Year 3 financial statements, what should be reported for the Year 2 gross margin? Select one: O a. $4,161,600 O b. $3,801,600 (There would be no difference in the amount reported since the inventory valuation method wasn't changed until Year 3.) O c. $3,661,600 O d. $3,941,600 O e. $3,561,600

In Year 1 and Year 2, Basilisk Manufacturing reported its gross margin as follows: Basilisk Manufacturing Partial Income Statement Year 1 Year 2 Sales $6,720,000 $7,340,000 Cost of goods sold 3.001,600 3,538,400 Gross margin 3,718,400 3,801,600 In Year 3, Basilisk Manufacturing changed its inventory valuation method. If the new inventory method had been used in Year 1 and Year 2, cost of goods sold would have been less by $100,000 in Year 1 and by $140,000 in Year 2. In the Year 3 financial statements, what should be reported for the Year 2 gross margin? Select one: O a. $4,161,600 O b. $3,801,600 (There would be no difference in the amount reported since the inventory valuation method wasn't changed until Year 3.) O c. $3,661,600 O d. $3,941,600 O e. $3,561,600

Name: In Year 1 and Year 2, Basilisk Manufacturing reported its gross margi
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Description: In Year 1 and Year 2, Basilisk Manufacturing reported its gross margin as follows:Basilisk ManufacturingPartial Income StatementYear 1Year 2Sales$6,720,000 $7,340,000Cost of goods sold 3,001,600 3,538,400Gross margin3,718,400 3,801,600In Year 3, Bas

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 37BE: Lower of Cost or Market Garcia Company uses FIFO, and its inventory at the end of the year was...

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