Question

Salvadore Inc., a local retailer, has provided the following data for the month of September:

Merchandise inventory, beginning balance $51,800
Merchandise inventory, ending balance $47,200
Sales $260,500
Purchases of merchandise inventory $137,200
Selling expense $21,400
Administrative expense $54,700

The cost of goods sold for September was:
1) $137,200
2) $213,300
3) $141,800
4) $132,600

Answer 1

The Cost of Goods Sold (COGS) for Salvadore Inc. for September was calculated using the formula: Beginning Inventory + Purchases - Ending Inventory. With the provided data, the COGS is $141,800, which is option 3.

Step-by-step explanation:

To calculate the Cost of Goods Sold (COGS) for Salvadore Inc. for the month of September, we use the formula:

• COGS = Beginning Inventory + Purchases - Ending Inventory

We have the following data:

• Beginning Inventory: $51,800
• Purchases of Merchandise Inventory: $137,200
• Ending Inventory: $47,200

Plugging these values into the formula:

• COGS = $51,800 + $137,200 - $47,200
• COGS = $141,800

Therefore, the Cost of Goods Sold for September was $141,800, which corresponds to option 3.