3.4 points Save Answer Question 22 Sutton Mirrors uses silver to produce its mirrors. Sutton anticipates it will need to purchase 1,000 kilograms of silver in July 2022 to make enough mirrors to meet its fourth quarter sales demand. To hedge against the risk of rising silver prices on June 1, 2022. Sutton enters into a forward contract with a third-party intermediary to buy 1.000 kilograms of silver at the current spot price of $500 per kilogram. It designates the contract as kilogram, and on that date Sutton purchased 1.000 kilograms of silver and settled the forward contract. Subsequently, Sutton used the purchased silver to make mirrors. Sutton sold its mirrors during the fourth quarter of 2022 for $1,500,000, and the total value of the inventory, which includes the cost of the silver purchase made on July 1, 2022. is $800,000. After taking into account the effect of the cash flow hedge, the cost of goods sold for the fourth quarter sales would be: $800.000 $$40.000 5760.000 $160.000 Question 22 of 30 Moving to another question will save this response