Tuisa Company, (a merchandising Co ) has following data pertaining to the year ended December 31, 2006 (CPA adapted) Purchases $540,000 Beginning inventory 88,000 Ending inventory 219,000 Freight in 59,000 Freight out 79,500 What is the cost of goods sold for the year a $488,500 b $647,500 c $588,5...

d 568000 Explanation Cost of goods sold for ...

Tuisa Company, (a merchandising Co.) has following data pertaining to the year ended December 31, 2006: (CPA

Question:

Tuisa Company, (a merchandising Co.) has following data pertaining to the year ended December 31, 2006: (CPA adapted)
Purchases........................... $540,000
Beginning inventory ................. 88,000
................... 219,000
Freight-in ............................. 59,000
Freight-out ........................... 79,500
What is the cost of goods sold for the year?
a. $488,500
b. $647,500
c. $588,500
d. $568,000
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...