Washburn Company reported cost of goods sold of $977,000 for Year 1 and $953,000 for Year 2. Using Year 1 as the base year, what was the percentage change for cost of goods sold from Year 1 to Year 2?
A)2.49% decrease.
B)2.52% decrease.
C)2.52% increase.
D)2.46% increase.
E)2.46% decreasE.(953,000 - 977,000)/977,000 = 2.46% decrease

Question

Quizplus · Accepted Answer

The percentage change for cost of goods sold is calculated as (Year 2 - Year 1) / Year 1 * 100. Plugging in the numbers from the problem gives us:

(953,000 - 977,000) / 977,000 * 100 = -2.46%

The negative sign indicates a decrease. Therefore, the best choice is E: 2.46% decrease.

Washburn Company Reported Cost of Goods Sold of $977,000 for Year