Question

New Navy Stores Co. had Merchandise Inventories of $150,000 on January 1st. During the year, the company purchased $230,000. A count of the inventory on December 31st, found total inventories remaining of $105,000. What is the Cost of goods sold for the year

Answer 1

Answer:

$375,000

Explanation:

New Navy Stores Co. had Merchandise Inventories of $150,000 on January 1st. During the year, the company purchased $230,000. A count of the inventory on December 31st, found total inventories remaining of $105,000.

The Cost of goods sold for the year is derived by

Beginning Inventory .........150,000

Add: Purchases..................230,000

Goods Available for sale..480,000

Less: Ending Inventory......105,000

Cost of Goods Sold...........375,000