Smalling Inc. has provided the following data for the month of November:
-The adjusted cost of goods sold that appears on the income statement for November is:
A) $237,000
B) $225,000
C) $214,000
D) $213,000

Question

Smalling Inc. has provided the following data for the month of November: 
-The adjusted cost of goods sold that appears on the income statement for November is:
A) $237,000 
B) $225,000 
C) $214,000 
D) $213,000

Quizplus · Accepted Answer

The adjusted cost of goods sold can be calculated using the following formula: Beginning inventory + Purchases - Ending inventory = Cost of goods sold. Using the data provided, we have: 
$80,000 (beginning inventory) + $172,000 (purchases) - $38,000 (ending inventory) = $214,000. Therefore, the adjusted cost of goods sold for November is $214,000, which corresponds to choice C.