23 January, 03:05

# A company has beginning inventory for the year of \$10,500. During the year, the company purchases inventory for \$160,000 and ends the year with \$23,000 of inventory. The company will report cost of goods sold equal to: Multiple Choice \$183,000. \$172,500. \$147,500. \$160,000.

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Answers (1)
1. 23 January, 05:31
0
The correct answer is \$147,500.

Explanation:

According to the scenario, the given data are as follows:

Beginning inventory = \$10,500

Purchase inventory = \$160,000

Ending inventory = \$23,000

So, we can calculate the cost of goods sold by using following method:

Cost of goods sold = Beginning inventory + Purchase inventory - Ending Inventory

By putting the value, we get,

Cost of goods sold = \$10,500 + \$160,000 - \$23,000

= \$147,500
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