Question

Pharoah Company had beginning inventory of $18600 at March 1, 2022. During the month, the company made purchases of $80600. The inventory at the end of the month is $21450. What is cost of goods sold for the month of March? A. $99200 B. $102050 C. $80600 D. $77750

Answer 1

Answer:

D. $77,750

Explanation:

Cost of goods sold is calculated as;

= Beginning inventory + Purchases - Ending inventory

Given that;

Beginning inventory = $18,600

Purchases = $80,600

Ending inventory = $21,450

Cost of goods sold

= $18,600 + $80,600 - $21,450

Cost of goods sold = $77,750

Cost of goods sold for the month of March is $77,750