The accounting records of Brownwood Company revealed the following information:
Brownwood's cost of goods sold is:
A)$721,000.
B)$730,000.
C)$778,000.
D)$787,000.
E)some other amount.

Question

The accounting records of Brownwood Company revealed the following information: 
Brownwood's cost of goods sold is:
A)$721,000. 
B)$730,000. 
C)$778,000. 
D)$787,000. 
E)some other amount.

Quizplus · Accepted Answer

Cost of Goods Sold can be calculated by taking Beginning Inventory, adding Purchases and subtracting Ending Inventory. Therefore, COGS = $670,000 + $780,000 - $729,000 = $721,000.

The Accounting Records of Brownwood Company Revealed the Following Information