During the month MaxiCo purchases inventory on credit for €22 000 and sells inventory on credit (which cost MaxiCo €14 000) for €24 000. Also during the month MaxiCo pays its suppliers €15 000 and receives €16 000 from its customers. MaxiCo's cost of sales is:
A) €7 000
B) €8 000
C) €10 000
D) €14 000

Question

Quizplus · Accepted Answer

Cost of sales refers to the direct costs attributable to the production of the goods sold by a company. In this case, MaxiCo's cost of sales is the cost of the inventory that was sold, which is €14,000.

During the Month MaxiCo Purchases Inventory on Credit for €22