Ask Question
24 June, 01:50

A company has beginning inventory for the year of $10,500. During the year, the company purchases inventory for $160,000 and ends the year with $23,000 of inventory. The company will report cost of goods sold equal to: Multiple Choice $183,000. $172,500. $147,500. $160,000.

+5
Answers (1)
  1. 24 June, 03:30
    0
    The correct answer is $147,500.

    Explanation:

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

    Beginning inventory = $10,500

    Purchase inventory = $160,000

    Ending inventory = $23,000

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

    Cost of goods sold = Beginning inventory + Purchase inventory - Ending Inventory

    By putting the value, we get,

    Cost of goods sold = $10,500 + $160,000 - $23,000

    = $147,500
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A company has beginning inventory for the year of $10,500. During the year, the company purchases inventory for $160,000 and ends the year ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers