At the end of last year, Helen's, Inc. had merchandise costing $115,000 in inventory. During January of the current year, the company purchased merchandise costing $35,000, and sold merchandise which it had purchased at a total cost of $55,000.
Based upon the above information, place the best answer in the space provided. In questions 1 through 3, assume that Helen's uses a perpetual inventory system.
-The amount of costs transferred from the Inventory account to the Cost of Goods Sold account during January was:

Question

Quizplus · Accepted Answer

The cost of goods sold during January was $55,000, which is the cost of the merchandise sold. In a perpetual inventory system, this amount is transferred from the Inventory account to the Cost of Goods Sold account.

At the End of Last Year, Helen's, Inc