McGown Corp. has the following information: Additional information for the year is as follows: Compute the unadjusted cost of goods sold.

Question

McGown Corp. has the following information:  Additional information for the year is as follows:  Compute the unadjusted cost of goods sold.

Quizplus · Accepted Answer

The unadjusted cost of goods sold can be calculated using the formula: 
Beginning Inventory + Purchases - Ending Inventory = Cost of Goods Sold 
From the given information, we have: 
Beginning Inventory = $90,000 
Purchases = $210,000 
Ending Inventory = $48,000 
Therefore, 
Cost of Goods Sold = $90,000 + $210,000 - $48,000 = $252,000. 
Hence, the correct answer is C.