accounting cost of goods sold

jharsin · #1 Oct 13, 2007, 07:11 PM

a retail company has goods available for sale of 500,000 at retail and 200,000 at cost and ending inventory of 41000 at retail what is the estimated cost of goods sold?

a 159000
b 191800
c 183000
d 175400

adiwsusanto · Mar 12, 2008, 01:50 AM

a. Inventory is valued at cost & so does COGS. The first value in the sentence is just trying to confuse you on the concept. Profit is the different between values at retail - the COGS. So, to get the COGS is simple = 200,000 - 41,000.



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