In its first month of operation a company made purchases of goods to sell totaling $58,000, and at the end of the month they had $7,500 of them still on hand.What would be the cost of sales expense for the month?
A)$7,500
B)$50,500
C)$58,000
D)Cannot be determined without knowing what the sales were for the month.

Question

Quizplus · Accepted Answer

To calculate the cost of sales expense, we need to subtract the value of goods still on hand at the end of the month from the total purchases made during the month. Therefore, cost of sales expense = $58,000 - $7,500 = $50,500. Option D is incorrect as the question does not require information about the sales made during the month.

In Its First Month of Operation a Company Made Purchases