Gate Grocery's most popular candy bars cost $0.50 each and sell for $0.75.Management determined that it had purchased 3,000 candy bars in February.It began February with 200 bars and had 150 remaining at the end of February.How much is cost of goods sold for February?
A)$1,475
B)$2,287.50
C)$3,050
D)$1,525

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) can be calculated by adding the cost of goods purchased to the beginning inventory and then subtracting the ending inventory. The cost of goods purchased is 3,000 candy bars at $0.50 each, which equals $1,500. The beginning inventory is 200 candy bars at $0.50 each, totaling $100. Therefore, the total goods available for sale is $1,600 ($1,500 + $100). Subtracting the ending inventory (150 candy bars at $0.50 each = $75) from the total goods available for sale ($1,600) gives the COGS as $1,525 ($1,600 - $75).

Gate Grocery's Most Popular Candy Bars Cost $0