Figure 2-15
Information from the records of Chrome Ponies Enterprises for June 2016 is as follows:
Inventories

-Refer to Figure 2-15. What is the cost of goods sold?
A) $36,500
B) $28,600
C) $29,400
D) $29,500

Question

Figure 2-15
Information from the records of Chrome Ponies Enterprises for June 2016 is as follows:
  Inventories
  
-Refer to Figure 2-15. What is the cost of goods sold?
A) $36,500 
B) $28,600 
C) $29,400 
D) $29,500

Quizplus · Accepted Answer

Cost of goods sold can be calculated as follows: 
Beginning inventory + Purchases - Ending inventory = Cost of goods sold 
In this case, the beginning inventory is $12,000, purchases are $55,000, and ending inventory is $37,600. 
Therefore, 
$12,000 + $55,000 - $37,600 = $29,400. 
Hence, the answer is option C.

Figure 2-15 Information from the Records of Chrome Ponies Enterprises for June