Exhibit 1.5.1 The following financial statements are to be used to answer the following questions:

-Refer to Exhibit 1.5-1. What is the Cost of goods sold for the year ended December 31, 2012?
A) $8,000
B) $12,000
C) $65,000
D) $100,000

Question

Exhibit 1.5.1 The following financial statements are to be used to answer the following questions:
  
-Refer to Exhibit 1.5-1. What is the Cost of goods sold for the year ended December 31, 2012?
A) $8,000 
B) $12,000 
C) $65,000 
D) $100,000

Quizplus · Accepted Answer

Cost of goods sold is reported on the Income Statement and is calculated as: Beginning Inventory + Purchases - Ending Inventory. From the Income Statement in Exhibit 1.5-1, we can see that Cost of goods sold for the year ended December 31, 2012 is $65,000.

Exhibit 15