For the current fiscal year, purchases were 210000, purchases returns and allowances were 3600 and freight in was 15000. If the beginning merchandise inventory was 140,000 and the ending merchandise inventory was 81000 the cost of goods sold is
Accepted Solution
A:
Answer:The cost of goods sold is 280400.Step-by-step explanation:Given: Purchases were 210000, purchases returns and allowances were 3600, freight was 15000. Beginning inventory 140,000 and the ending inventory was 81000.Now, to find the cost of goods sold (COGS).Cost of goods sold (COGS) = (Purchases - purchases returns and allowances) + freight + beginning inventory - ending inventory.[tex]COGS = (210000 - 3600) + 15000 + 140000 - 81000 [/tex][tex]COGS = 206400 + 15000 +140000 - 81000[/tex][tex]COGS = 361400 - 81000[/tex][tex]COGS = 280400[/tex]Therefore, the cost of goods sold is 280400.