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: