The following information is available for Dennehy Company: $$\begin{array} { l r l r }
\text { Sales Revenue } & \$ 390,000 & \text { Freight-In } & \$ 30,000 \
\text { Ending Inventory } & 37,500 & \text { Purchase Returns and Allowances } & 15,000 \
\text { Purchases } & 270,000 & \text { Beginning Inventory } & 45,000
\end{array}$$ Dennehy's cost of goods sold is
A) $262,500.
B) $285,000.
C) $292,500.
D) $345,000.

Question

The following information is available for Dennehy Company: $$\begin{array} { l r l r } 
\text { Sales Revenue } & \$ 390,000 & \text { Freight-In } & \$ 30,000 \
\text { Ending Inventory } & 37,500 & \text { Purchase Returns and Allowances } & 15,000 \
\text { Purchases } & 270,000 & \text { Beginning Inventory } & 45,000
\end{array}$$ Dennehy's cost of goods sold is
A) $262,500.
B) $285,000.
C) $292,500.
D) $345,000.

Quizplus · Accepted Answer

Cost of Goods Sold (COGS) is calculated as: Beginning Inventory + Purchases + Freight-In - Purchase Returns and Allowances - Ending Inventory. So, COGS = $45,000 + $270,000 + $30,000 - $15,000 - $37,500 = $292,500.

The Following Information Is Available for Dennehy Company Dennehy's Cost of Goods Sold Is A) $262,500

The Following Information Is Available for Dennehy Company Dennehy's Cost of Goods Sold Is
A) $262,500