Feil Ltd started 2023 with $77,000 of merchandise on hand. During 2023, $395,000 in merchandise was purchased on account with credit terms of 1/10, n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. Feil Ltd paid freight charges of $18,500. Inventory on hand at the end of the year was $54,000. Feil Ltd uses a perpetual inventory system. 

What is cost of goods sold, assuming Feil Ltd uses the gross method?

Answer rating: 100% (QA)

To calculate the Cost of Goods Sold COGS using the gross method we need to consider the be... View the full answer