For the current fiscal year, Purchases were $166,000, Purchase Returns and Allowances were $3,000 and Freight In was $12,000. If the beginning merchandise inventory was $110,000 and the ending merchandise inventory was $75,000, the Cost of Goods Sold is:

Question

Quizplus · Accepted Answer

Cost of Goods Sold = Beginning Inventory + Purchases + Freight In - Ending Inventory - Purchase Returns and Allowances

= $110,000 + $166,000 + $12,000 - $75,000 - $3,000

= $210,000

Therefore, the answer is (C) $210,000.

For the Current Fiscal Year, Purchases Were $166,000, Purchase Returns