Question

The ending inventory for Misty Harbor Co. is $57,000. If beginning inventory was $68,000 and goods available for sale totaled $117,000, the cost of goods sold is:

A) $60,000
B) $128,000
C) $68,000
D) $49,000
E) none of the above

Answer 1

D i am so sure that this the correct
Answer

Answer 2

The cost of goods sold (COGS) for Misty Harbor Co. is calculated using the formula COGS = Beginning Inventory + Purchases - Ending Inventory. With the provided figures, the COGS is determined to be $60,000, which corresponds to answer option A.

Step-by-step explanation:

To determine Misty Harbor Co.'s cost of goods sold (COGS), we use the formula: COGS = Beginning Inventory + Purchases - Ending Inventory. Given that the beginning inventory is $68,000 and the ending inventory is $57,000, and the goods available for sale totaled $117,000, we can infer that Purchases + Beginning Inventory equals the goods available for sale.

Therefore, no additional information is needed to determine purchases. We simply apply the information provided into our formula.

COGS = $68,000 (Beginning Inventory) + Purchases - $57,000 (Ending Inventory)

Given that goods available for sale (beginning inventory + purchases) are $117,000, we get:

COGS = $117,000 (Goods Available for Sale) - $57,000 (Ending Inventory) = $60,000

Hence, the correct answer is A) $60,000.