A company reported a gross profit percentage of 25% with net sales of $347,800.What is the amount of cost of goods sold?
A) $86,950
B) $260,850
C) $326,063
D) $108,688

Question

Quizplus · Accepted Answer

To find the cost of goods sold, we need to first find the gross profit. 
Gross profit = Net sales - Cost of goods sold

Gross profit percentage = (Gross profit / Net sales) * 100

25% = (Gross profit / $347,800) * 100
Gross profit = ($347,800 * 25%) / 100 = $86,950

Now, we can use the gross profit to find the cost of goods sold.
Cost of goods sold = Net sales - Gross profit
Cost of goods sold = $347,800 - $86,950 = $260,850

Therefore, the answer is B.

A Company Reported a Gross Profit Percentage of 25% with Net