A company purchased 400 units at $75 per unit. The company sold 385 units. What is the cost of goods sold and ending inventory?
D) .

Question

Quizplus · Accepted Answer

To calculate the cost of goods sold, we need to determine how many units are left in inventory. 400 - 385 = 15 units. The cost of the 15 units left in inventory is 15 x $75 = $1125.

To calculate the cost of goods sold, we need to determine the cost of the 385 units that were sold. 385 x $75 = $28,875.

Therefore, the cost of goods sold is $28,875 and the ending inventory is $1125. 
The correct choice is C.

A Company Purchased 400 Units at $75 Per Unit