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17 August, 11:30

Tulsa Company, (a merchandising Co.) has the following data pertaining to the year ended December 31, 2016: (CPA adapted) Purchases $450,000 Beginning inventory 170,000 Ending inventory 210,000 Transportation-in 50,000 Delivery expense 75,000 What is the cost of goods sold for the year?

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  1. 17 August, 13:10
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    The cost of goods sold for the year is $460,000.

    Explanation:

    The value of purchases is given at $450,000.

    The value of beginning inventory is given at $170,000.

    The value of ending inventory is given at $210,000.

    Transportation in is $50,000.

    The value of delivery expense is given at $75,000.

    The cost of goods sold for the year

    =The value of purchases+The value of beginning inventory+Transportation in-The value of ending inventory

    =$450,000+$170,000+$50,000-$210,000

    =$460,000
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