Marigold Corp. sold goods with a total selling price of $809,700 during the year. It purchased goods for $390,100 and had beginning inventory of $66,800. A count of its ending inventory determined that goods on hand was $59,000. What was its cost of goods sold

Question

Business

Friday

4 February, 01:19

Marigold Corp. sold goods with a total selling price of $809,700 during the year. It purchased goods for $390,100 and had beginning inventory of $66,800. A count of its ending inventory determined that goods on hand was $59,000. What was its cost of goods sold

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Pablo Koch · Answer 1

The correct answer is $397,900.

Explanation:

According to the scenario, the given data are as follows:

Beginning inventory = $66,800

Total selling price = $809,700

Purchased goods = $390,100

Ending inventory = $59,000

So, we can calculate the cost of goods sold by using following formula:

Cost of goods sold = Beginning Inventory + Purchases - Ending Inventory

= $66,800 + $390,100 - $59,000

= $397,900