Acacia Company had inventory of $300,000 on December 31, 2015. Other information is as follows:
Purchases $1,500,000
Sales 1,800,000
Inventory 1/1/2015 500,000

What is the amount of Acacia's cost of goods sold for 2015?

Question

Acacia Company had inventory of $300,000 on December 31, 2015. Other information is as follows: ​
Purchases $1,500,000
Sales 1,800,000
Inventory 1/1/2015 500,000
​
What is the amount of Acacia's cost of goods sold for 2015?

Quizplus · Accepted Answer

Beginning inventory + Purchases = Goods available for sale
500,000 + 1,500,000 = 2,000,000
Goods available for sale - Ending inventory = Cost of goods sold
2,000,000 - 300,000 = 1,700,000. Therefore, the answer is C.

Acacia Company Had Inventory of $300,000 on December 31, 2015