Messana Corporation reported the following data for the month of August: The adjusted cost of goods sold that appears on the income statement for August is:
A)$229,000
B)$211,000
C)$209,000
D)$247,000

Question

Messana Corporation reported the following data for the month of August:  The adjusted cost of goods sold that appears on the income statement for August is:
A)$229,000 
B)$211,000 
C)$209,000 
D)$247,000

Quizplus · Accepted Answer

The adjusted cost of goods sold can be calculated by subtracting the ending inventory from the sum of beginning inventory and purchases. 
Beginning inventory = $57,000 
Purchases = $191,000 
Total cost of goods available for sale = $248,000 
Ending inventory = $39,000 
Adjusted cost of goods sold = $209,000 (which is the difference between $248,000 and $39,000)

Messana Corporation Reported the Following Data for the Month of August