The following information is available for Kerr Company for 2007: $$\begin{array} { l r }
\text { Freight-in } & \$ 30,000 \
\text { Purchase returns } & 75,000 \
\text { Selling expenses } & 150,000 \
\text { Ending inventory } & 260,000
\end{array}$$ The cost of goods sold is equal to 400% of selling expenses.What is the cost of goods available for sale?
A)$600,000.
B)$890,000.
C)$815,000.
D)$860,000.

Question

The following information is available for Kerr Company for 2007: $$\begin{array} { l r } 
\text { Freight-in } & \$ 30,000 \
\text { Purchase returns } & 75,000 \
\text { Selling expenses } & 150,000 \
\text { Ending inventory } & 260,000
\end{array}$$ The cost of goods sold is equal to 400% of selling expenses.What is the cost of goods available for sale?
A)$600,000.
B)$890,000.
C)$815,000.
D)$860,000.

Quizplus · Accepted Answer

The Answer of The following information is available for Kerr Company for 2007: $$\begin{array} { l r } 
\text { Freight-in } & \$ 30,000 \
\text { Purchase returns } & 75,000 \
\text { Selling expenses } & 150,000 \
\text { Ending inventory } & 260,000
\end{array}$$ The cost of goods sold is equal to 400% of selling expenses.What is the cost of goods available for sale?
A)$600,000.
B)$890,000.
C)$815,000.
D)$860,000.

The Following Information Is Available for Kerr Company for 2007