When finished goods are sold, there is an increase in which of the following accounts?

When finished goods are sold, there is an increase in which of the following accounts?

A- Finished Goods Inventory

B- Cost of Goods Sold

C- Work-in-Process Inventory

D- Cost of Goods Manufactured

Review Questions M/C

B

 

 

 

Review Questions M/C

64. Gabruk Inc. is a merchandising company. Last month the company’s merchandise purchases totaled $88,000. The company’s beginning merchandise inventory was $15,000 and its ending merchandise inventory was $13,000. What was the company’s cost of goods sold for the month?  A. $88,000 B. $90,000 C. $86,000 D. $116,000

 

 

Review Questions M/C

B. $90,000 Cost of goods sold = Beginning merchandise inventory + purchases – Ending merchandise inventory = $15,000 + $88,000 – $13,000 = $90,000

A partial listing of costs incurred during December at Gagnier Corporation appears below:

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