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200 At the end of last year,Games-2-Use had merchandise costing $140,000 in inventory.During January of the current year,the company purchased merchandise costing $102,000,and sold merchandise that it had purchased at a total cost of $84,000.Games-2-Use uses a perpetual inventory system.
-The amount of goods transferred from the Inventory account to the Cost of Goods Sold account during January was:
A)$0.
B)$84,000.
C)$102,000.
D)$56,000.

Question

Quizplus · Accepted Answer

The amount of goods transferred from the Inventory account to the Cost of Goods Sold account during January was the cost of goods sold, which is calculated as the total cost of merchandise purchased ($102,000) minus the cost of merchandise still in inventory at the end of the month ($56,000 = $140,000 - $84,000). Therefore, the answer is $102,000 - $56,000 = $84,000.

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