Question

According to the Ending Inventory Report, how would you calculate the cost of Sales? Ending Inventory Report Administrative Salaries $ 100,000Amortization Expense $ 20,000 Beginning Inventory $ 75,000 Ending Inventory $ 60,000Office Supplies Expense $ 25,000 Purchases $ 125,000Travel & Entertainment Expense $ 5,000 A) 575,000 + 125,000 - 560,000 B) 5125,000 - 520,000 C) 575,000 + 125,000 - 560,000 + 520,000 D) 575,000 - 560,000 E) 575,000 + 125,000 - 560,000 - 520,000

Answer 1

Answer:

A. $575,000 + $125,000 - $560,000

Explanation:

According to the ending inventory report, cost of sales would be calculated as follow;

Cost of sales = Beginning inventory + Purchase - Ending inventory

Cost of sales = $575,000 + $125,000 - $560,000