From the following information, compute cost of goods sold. $\begin{array}{ll}
\text { Purchase returns } & \$ 200 \
\text { Inventory, December } 31 & 1,500 \
\text { Freight-in } & 100 \
\text { Inventory, January } 1 & 1,800 \
\text { Purchases } & 5,000
\end{array}$
A)$5, 300
B)$5, 200
C)$5, 100
D)$5, 000

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) can be calculated using the formula: COGS = Opening Inventory + Purchases - Purchase Returns + Freight-in - Closing Inventory. Plugging in the given values: COGS = $1,800 + $5,000 - $200 + $100 - $1,500 = $5,200.

From the Following Information, Compute Cost of Goods Sold A)$5, 300 B)$5, 200 C)$5, 100 D)$5, 000

From the Following Information, Compute Cost of Goods Sold A)$5, 300
B)$5, 200
C)$5, 100
D)$5, 000