Compute the Cost of Goods Sold for 2008 using the following information:
A)$244,000
B)$234,000
C)$211,000
D)$198,000

Name: Compute the Cost of Goods Sold for 2008 using the following information: A)$244,000 B)$234,000 C)$211,000 D)$198,000
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Question

Compute the Cost of Goods Sold for 2008 using the following information: 
A)$244,000 
B)$234,000 
C)$211,000 
D)$198,000

Quizplus · Accepted Answer

The Cost of Goods Sold formula is Beginning Inventory + Purchases - Ending Inventory. In this case, we have: 
Beginning Inventory: $85,000 
Purchases: $398,000 
Ending Inventory: $149,000

Therefore, Cost of Goods Sold= $85,000 + $398,000 - $149,000 = $234,000.

Compute the Cost of Goods Sold for 2008 Using the Following