Tondre Inc.has provided the following data for the month of July: The adjusted cost of goods sold that appears on the income statement for July is:
A)$201,000
B)$198,000
C)$219,000
D)$210,000

Question

Tondre Inc.has provided the following data for the month of July:  The adjusted cost of goods sold that appears on the income statement for July is:
A)$201,000 
B)$198,000 
C)$219,000 
D)$210,000

Quizplus · Accepted Answer

To calculate the adjusted cost of goods sold, we need to add the beginning inventory to purchases and then deduct ending inventory. 
Beginning Inventory = $70,000 
Purchases = $195,000 
Ending Inventory = $67,000

Adjusted Cost of Goods Sold = $70,000 + $195,000 - $67,000 
Adjusted Cost of Goods Sold = $198,000

Therefore, the adjusted cost of goods sold that appears on the income statement for July is $198,000, so the best choice is B.