Question

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?

Answer 1

The cost of goods sold for the year is $460,000.

Step-by-step 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