Accounting cost of goods sold [Archive]

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jharsin

Oct 13, 2007, 08:11 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, 02:50 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.