Scenario 1 - Gail Smith

Gail Smith operates a small basket weaving business as a sole proprietor. She incurred the following expenses during the tax year.

Beginning inventory, raw materials Beginning inventory, finished goods Ending inventory, raw materials Ending inventory, finished goods Purchases

Fabric purchased for finished goods Building rent Freight-in for fabric Freight-out for sale of finished goods

Calculate Gail's cost of goods sold.

$ 5,000 $ 10,000 $ 6,250 $ 4,700 $ 17,500 $ 2,350 $ 12,000 $ 300 $ 475

Answer the following question based on the scenario for Gail Smith. Select the cost of goods sold:

a) $24,375 b) $23,725 c) $23,900 d) $24,200