Jordan Company The following information has been taken from the cost records of Jordan Company for the past year:
Refer to Jordan Company.Cost of Goods Sold was
A)$691.
B)$716.
C)$736.
D)$801.

Question

Jordan Company The following information has been taken from the cost records of Jordan Company for the past year:
  Refer to Jordan Company.Cost of Goods Sold was
A)$691. 
B)$716. 
C)$736. 
D)$801.

Quizplus · Accepted Answer

The Cost of Goods Sold (COGS) can be calculated by subtracting the ending inventory from the sum of beginning inventory and purchases. Beginning inventory is given as $170, purchases as $540 and ending inventory as $50. So,
COGS = (Beginning inventory + Purchases) - Ending inventory
COGS = ($170 + $540) - $50
COGS = $710 - $50
COGS = $660
Hence, the closest answer option is B) $716.

Jordan Company the Following Information Has Been Taken from the Cost