A company buys 100 televisions for $500 each. It sells 60 televisions for $900 each. What is the 'cost of goods sold' expense?

Name: A company buys 100 televisions for $500 each. It sells 60 televisions for $900 each. What is the 'cost of goods sold' expense?
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Question

Quizplus · Accepted Answer

The 'cost of goods sold' (COGS) is calculated based on the cost to the company for the goods that were sold. The company sold 60 televisions, and each television cost $500. Therefore, the COGS is 60 televisions * $500 = $30,000.

A Company Buys 100 Televisions for $500 Each