Maercker Company reported the following year-end amounts:
What is Maercker Company's Ending Inventory and Cost of Goods Sold for the year?

Question

Maercker Company reported the following year-end amounts:
 What is Maercker Company's Ending Inventory and Cost of Goods Sold for the year?

Quizplus · Accepted Answer

Gross profit = Net sales - Cost of goods sold
$85,800 = $210,000 - X
X = $210,000 - $85,800
X = $124,200 = Cost of goods sold
Cost of goods sold = Beginning inventory + Net cost of purchases - Ending inventory
$124,200 = $30,600 + $135,000 - X
X = $30,600 + $135,000 - $124,200
X = $41,400 = Ending inventory

Maercker Company Reported the Following Year-End Amounts