The following information was obtained from the accounts of McKay Company:

Given this information, the cost of goods sold during the year is

Question

The following information was obtained from the accounts of McKay Company:

Given this information, the cost of goods sold during the year is

Quizplus · Accepted Answer

The cost of goods sold can be calculated using the following formula:
Beginning Inventory + Purchases - Ending Inventory = Cost of Goods Sold

Based on the information provided, we know that:
Beginning Inventory = $14,000
Ending Inventory = $8,000
Purchases = $45,000

Plugging these values into the formula:
$14,000 + $45,000 - $8,000 = $51,000

Therefore, the cost of goods sold during the year is $51,000, which corresponds to choice C.

The Following Information Was Obtained from the Accounts of McKay