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    student290's Avatar
    student290 Posts: 2, Reputation: 1
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    #1

    Jun 27, 2007, 05:36 AM
    Cost of goods sold
    I have never grasped the concept of working backwards into a number. THe problem I am working on says that the cost of goods sold is equal to 300% of selling expenses. I was given the following numbers to work with:
    Freight-in $60,000
    Purchase returns $130,000
    Selling expenses $300,000
    Ending Inventory $520,000

    The possible answers are
    A. 900,000
    B. 1,480,000
    C. 1,330,000
    D. 1,420,000

    Any help will be appreciated.
    Superfly999's Avatar
    Superfly999 Posts: 235, Reputation: 14
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    #2

    Jun 27, 2007, 06:26 AM
    Well, first off (don't mean to be rude if I come off as it) this site has a rule that we can't flat out give you the answer to homework questions UNLESS you provide something that shows you tried the question. Although I say this, here is a hint. It tells you the answer straight up in the question. 300% of what account?
    student290's Avatar
    student290 Posts: 2, Reputation: 1
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    #3

    Jun 27, 2007, 07:19 AM
    I did not realize that this sight wanted an attempt at the question before answering the question. :) If I understand your reply I would mulitply selling expenses by 300% which would give me the answer of $900,000. I guess the problem is giving me those extra numbers just to be confusing.

    Thank You for any help
    Superfly999's Avatar
    Superfly999 Posts: 235, Reputation: 14
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    #4

    Jun 27, 2007, 07:24 AM
    Good job :D, you just have to think on textbook questions that, even though it seems kind of weird, their questions are almost always just like they ask.

    *EDIT* this site really doesn't want you attempting to answer for anything; it is just for homework questions really and this seemed like one :P. It is just so that we don't give answers without you doing some of the work and in turn learning it :). This is a wonderful site and hope you stay not only for accounting but for other areas.
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