The accounting records of Dolphin Company revealed the following information:
Dolphin's cost of goods sold is:
A)$508,000.
B)$529,000.
C)$531,000.
D)$553,000.
E)some other amount.

Question

The accounting records of Dolphin Company revealed the following information: 
Dolphin's cost of goods sold is:
A)$508,000. 
B)$529,000. 
C)$531,000. 
D)$553,000. 
E)some other amount.

Quizplus · Accepted Answer

The cost of goods sold can be calculated by subtracting the ending inventory from the sum of beginning inventory and purchases: $500,000 + $40,000 - $9,000 = $531,000.

The Accounting Records of Dolphin Company Revealed the Following Information