Answer:
correct answer is A. $320,000
Explanation:
given data
sold = 7,500 units
Sales Revenue = $566,000
Purchases= 305,000
Selling and Administrative Expense = 68,000
Freight In = 13,000
Beginning Merchandise Inventory = 45,000
Ending Merchandise Inventory = 42,000
solution
we know that gross profit is equal to Sales minus Cost of goods sold .......1
so first we get here gross profit that is
gross profit = ( sales revenue + ending inventory ) - ( beginning inventory + purchase + freight in ) .........1
gross profit = ( $566,000 + $42000 ) - ( $45000 + 305000 + $13000 )
gross profit = $245000
so cost of good sold will be from equation 1
cost of good sold = $566,000 - $245000 = 321000 so approx
so correct answer is A. $320,000
