Streif Incorporated a local retailer, has provided the following data for the month of June: The cost of goods sold for June was:
A) $128,000
B) $181,000
C) $122,000
D) $134,000

Question

Streif Incorporated a local retailer, has provided the following data for the month of June:  The cost of goods sold for June was:
A) $128,000 
B) $181,000 
C) $122,000 
D) $134,000

Quizplus · Accepted Answer

The cost of goods sold (COGS) can be calculated using the following formula:
Beginning inventory + Purchases - Ending inventory = COGS
From the given data, we know that:

Beginning inventory = $15,000
Ending inventory = $20,000
Purchases = $127,000
Using the formula, we can calculate the COGS as:

$15,000 + $127,000 - $20,000 = $122,000

Streif Incorporated a Local Retailer, Has Provided the Following Data