Given the following information, calculate the firm's COST OF SALES. $$\begin{array} { l l }
\text { Beginning inventory } & \$ 50,000 \
\text { Purchase discounts } & \$ 10,000 \
\text { Ending inventory } & \$ 60,000 \
\text { Purchases } & \$ 200,000 \
\text { Freight-in } & \$ 10,000
\end{array}$$
A) $180,000
B) $285,000
C) $190,000
D) $120,000
E) Cannot be determined without knowing the firm's net sales.

Question

Given the following information, calculate the firm's COST OF SALES. $$\begin{array} { l l } 
\text { Beginning inventory } & \$ 50,000 \
\text { Purchase discounts } & \$ 10,000 \
\text { Ending inventory } & \$ 60,000 \
\text { Purchases } & \$ 200,000 \
\text { Freight-in } & \$ 10,000
\end{array}$$
A) $180,000
B) $285,000
C) $190,000
D) $120,000
E) Cannot be determined without knowing the firm's net sales.

Quizplus · Accepted Answer

Cost of Sales = Beginning Inventory + Purchases + Freight-in - Purchase Discounts - Ending Inventory = $50,000 + $200,000 + $10,000 - $10,000 - $60,000 = $190,000.

Given the Following Information, Calculate the Firm's COST OF SALES