According to the Ending Inventory Report, how would you calculate the cost of Sales?

According to the Ending Inventory Report, how would you calculate the cost of Sales?

Ending Inventory Report

Administrative Salaries	$100,000
Amortization Expense	$20,000
Beginning Inventory	$75,000
Ending Inventory	$60,000
Office Supplies Expense	$25,000
Purchases	$125,000
Travel & Entertainment Expense	$5,000

A.) $75,000 + 125,000 - $60,000

B.) $125,000 - $20,000

C.) $75,000 + 125,000 - $60,000 + $20,000

D.) $75,000 - $60,000

E.) $75,000 + 125,000 - $60,000 - $20,000

Solutions

Expert Solution

Cost of sales

Beginning inventory	75000
Purchase	125000
Cost of goods available for sale	200000
Less: Ending inventory	-60000
Cost of sales	140000

So answer is a) $75,000 + 125,000 - $60,000

a) $75,000 + 125,000 - $60,000

ekkarill92 answered 2 years ago

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