Question 1. Perfect Catering Company's ending inventory was $103,700 at historical cost and $111,500 at current replacement cost. Before consideration of the lower-of-cost-or-market rule, the company's cost of goods sold was $62,000. Following U.S. GAAP, which of the following statements reflect the correct application of the lower-of-cost-or-market rule?

A.The Ending Inventory balance will be $111,500, and Cost of Goods Sold will be $62,000.

B.The Ending Inventory balance will be $103,700, and Cost of Goods Sold will be $62,000.

C.The Ending Inventory balance will be $111,500, and Cost of Goods Sold will be $69,800.

D.The Ending Inventory balance will be $111,500,and Cost of Goods Sold will be $54,200.

Question 2.- Given the following data, what is cost of goods sold as determined by the FIFO method?

Sales 280 units

Beginning inventory 250 units at $6 per unit

Purchases 128 units ar $11 per unit

A.) 2,320 B.) 1,680 C.) $3,080 D.)$1,830