Olde Tyme Beverage Company's operating activities for the year are listed below. $$\begin{array} { | l | r | }
\hline \text { Purcheses } & \$ 132,000 \
\hline \text { Operating expenses } & 80,000 \
\hline \text { Bepinging inventory } & 12,000 \
\hline \text { Ending inventory } & 16,000 \
\hline \text { Sales revenue } & 275,000 \
\hline
\end{array}$$
-What is the cost of goods sold for the year?
A)$144,000
B)$132,000
C)$128,000
D)$ 63,000

Question

Olde Tyme Beverage Company's operating activities for the year are listed below. $$\begin{array} { | l | r | } 
\hline \text { Purcheses } & \$ 132,000 \
\hline \text { Operating expenses } & 80,000 \
\hline \text { Bepinging inventory } & 12,000 \
\hline \text { Ending inventory } & 16,000 \
\hline \text { Sales revenue } & 275,000 \
\hline
\end{array}$$ 
-What is the cost of goods sold for the year?
A)$144,000
B)$132,000
C)$128,000
D)$ 63,000

Quizplus · Accepted Answer

The cost of goods sold can be found by subtracting the ending inventory from the beginning inventory, adding any purchases made during the year, and then subtracting the ending inventory again. Beginning inventory + Purchases - Ending inventory = Cost of goods sold. Using the information provided in the table, we get: $57,000 + $113,000 - $42,000 = $128,000. Therefore, the cost of goods sold for the year is $128,000.

Olde Tyme Beverage Company's Operating Activities for the Year Are