Question

For the current fiscal year, Purchases were... For the current fiscal year, Purchases were $305,000, Purchases Returns and Allowances were $9,100, Purchases Discounts were $3,100 and Freight In was $41,000. If the beginning merchandise inventory was $66,000 and the ending merchandise inventory was $87,000, the Cost of Goods Sold is: _____________
a. $266,200
b. $281,200
c. $272,800
d. $251,200

Answer 1

Answer:

$312,800

Explanation:

Cost of Goods Sold = Opening Inventory + Purchases - Closing Inventory

therefore,

Cost of Goods Sold = $66,000 + ($305,000 - $9,100 - $3,100 + $41,000) - $87,000

                                 = $312,800

thus,

The Cost of Goods Sold is $312,800