Youngstown Rubber reports the following data for its first year of operation. What is the cost of goods sold?
A)$680,200
B)$459,500
C)$839,500
D)$1,490,400

Question

Youngstown Rubber reports the following data for its first year of operation.  What is the cost of goods sold?
A)$680,200 
B)$459,500 
C)$839,500 
D)$1,490,400

Quizplus · Accepted Answer

Cost of goods sold can be calculated using the formula:
Cost of goods sold = Beginning inventory + Purchases - Ending inventory

Using the data provided:
Beginning inventory = $181,500 
Purchases = $1,815,000
Ending inventory = $157,000

Cost of goods sold = $181,500 + $1,815,000 - $157,000 = $1,839,500.

Therefore, the correct option is C, which is $839,500.

Youngstown Rubber Reports the Following Data for Its First Year