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
