QUESTION 9/11
According to the Ending Inventory Report, how would you calculate the cost of Sales?
Ending Inventory Report
| Administrative Salaries | $100,000 |
|---|---|
| Amortization Expense | $20,000 |
| Beginning Inventory | $75,000 |
| Ending Inventory | $60,000 |
| Office Supplies Expense | $25,000 |
| Purchases | $125,000 |
| Travel & Entertainment Expense | $5,000 |
A.) $75,000 + 125,000 - $60,000
B.) $125,000 - $20,000
C.) $75,000 + 125,000 - $60,000 + $20,000
D.) $75,000 - $60,000
E.) $75,000 + 125,000 - $60,000 - $20,000
Cost of sales
| Beginning inventory | 75000 |
| Purchase | 125000 |
| Cost of goods available for sale | 200000 |
| Less: Ending inventory | -60000 |
| Cost of sales | 140000 |
So answer is a) $75,000 + 125,000 - $60,000
According to the Ending Inventory Report, how would you calculate the cost of Sales?