The following information was derived from the 2007 accounting records of Logan Co.: $\begin{array}{lrr}&& \text {Logan's Goods }\& \text { Logan 's Central Warehouse}& \text {Held by Consignees }\ \hline
\text { Beginning inventory } & \$ 130,000 & \$ 14,000 \
\text { Purchases } & 575,000 & 70,000 \
\text { Freight-in } & 10,000 &\\text { Transportation to consignees } & & 5,000 \
\text { Freight-out } & 30,000 & 8,000 \
\text { Ending inventory } & 145,000 & 20,000
\end{array}$ Logan 's 2007 cost of sales was
A)$570,000.
B)$600,000.
C)$634,000.
D)$639,000.

Question

The following information was derived from the 2007 accounting records of Logan Co.: $\begin{array}{lrr}&& \text {Logan's Goods }\& \text { Logan 's Central Warehouse}& \text {Held by Consignees }\  \hline
\text { Beginning inventory } & \$ 130,000 & \$ 14,000 \
\text { Purchases } & 575,000 & 70,000 \
\text { Freight-in } & 10,000 &\\text { Transportation to consignees } & & 5,000 \
\text { Freight-out } & 30,000 & 8,000 \
\text { Ending inventory } & 145,000 & 20,000
\end{array}$ Logan 's 2007 cost of sales was
A)$570,000.
B)$600,000.
C)$634,000.
D)$639,000.

Quizplus · Accepted Answer

Cost of goods sold = Beginning inventory + Purchases + Freight-in - Ending inventory= 130,000 + 575,000 + 10,000 - 145,000= $634,000

The Following Information Was Derived from the 2007 Accounting Records