What amount should yellow report as cost of goods sold

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Reference no: EM132859033

YELLOW Corporation sold selected merchandise on a consignment basis during 2020. Yellow's accounting records show the following information: 

Inventory,January 1 - 244,000

Inventory on hand, December 31-290,000

Inventory out on consignment, December 3- 40,000

Purchases- 1,080,000

Freight-in - 20,000

Freight-out to customers- 70,000

Freight out to consignments- 10,000

Problem 1: What amount should YELLOW report as cost of goods sold in its 2020 income statement?

Option 1: ? 1,024,000

Option 2: ? 1,354,000

Option 3: ? 1,094,000

Option 4: ? 1,014,000

Reference no: EM132859033

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