Asked by Emily Snoke on May 11, 2024
Verified
Streif Incorporated a local retailer, has provided the following data for the month of June: The cost of goods sold for June was:
A) $128,000
B) $181,000
C) $122,000
D) $134,000
Local Retailer
A business that sells products directly to consumers in a specific geographical area.
Cost of Goods Sold
The costs directly associated with manufacturing the products a company sells, such as materials and labor expenses.
- Figure the per-unit and comprehensive variable and fixed expenses.
Verified Answer
SS
Saujanya SubediMay 15, 2024
Final Answer :
C
Explanation :
The cost of goods sold (COGS) can be calculated using the following formula:
Beginning inventory + Purchases - Ending inventory = COGS
From the given data, we know that:
Beginning inventory = $15,000
Ending inventory = $20,000
Purchases = $127,000
Using the formula, we can calculate the COGS as:
$15,000 + $127,000 - $20,000 = $122,000
Beginning inventory + Purchases - Ending inventory = COGS
From the given data, we know that:
Beginning inventory = $15,000
Ending inventory = $20,000
Purchases = $127,000
Using the formula, we can calculate the COGS as:
$15,000 + $127,000 - $20,000 = $122,000
Learning Objectives
- Figure the per-unit and comprehensive variable and fixed expenses.
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