FINANCIAL ACCT.FUND(LL)W/ACCESS>CUSTOM<
FINANCIAL ACCT.FUND(LL)W/ACCESS>CUSTOM<
6th Edition
ISBN: 9781260255119
Author: Wild
Publisher: MCG CUSTOM
Question
Chapter 4, Problem 1MCQ
To determine

Determine the cost of goods sold.

Expert Solution & Answer
Check Mark

Answer to Problem 1MCQ

Option c. $357,000.

Explanation of Solution

Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a company to sell the goods during the given period.

Gross margin (gross profit): Gross margin is the amount of revenue earned from goods sold over the costs incurred for the goods sold.

Determine the cost of goods sold.

Cost of goods sold=Net salesGross profit=$550,000$193,000=$357,000

From the above explanation, Options a., b., d. and e. are incorrect answers. Thus, Option c. is the correct answer.

Conclusion

Hence, the correct answer is Option c. $357,000.

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Chapter 4 Solutions

FINANCIAL ACCT.FUND(LL)W/ACCESS>CUSTOM<

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