Carryon Co.,a manufacturer,had inventories at the beginning and end of its current year as follows:

During the year,the following costs and expenses were incurred:

Carryon's cost of goods sold for the year is

Question

Carryon Co.,a manufacturer,had inventories at the beginning and end of its current year as follows:

During the year,the following costs and expenses were incurred:

Carryon's cost of goods sold for the year is

Quizplus · Accepted Answer

The cost of goods sold can be calculated using the formula:
Beginning inventory + Purchases - Ending inventory = Cost of goods sold

From the information given, we have:

Beginning inventory = $12,000
Ending inventory = $9,500

Purchases = $239,000 (given as total costs and expenses - salaries and wages)

Plugging in the numbers:
$12,000 + $239,000 - $9,500 = $260,500

Therefore, the cost of goods sold for Carryon Co. for the year is $260,500, which is option B.