Purrfect Pets uses the perpetual inventory system. At the beginning of the quart
ID: 2489905 • Letter: P
Question
Purrfect Pets uses the perpetual inventory system. At the beginning of the quarter, Purrfect Pets has $48,000 in inventory. During the quarter the company purchases $10,600 of new inventory from a vendor, returned $1,000 of inventory to the vendor, and took advantage of discounts from the vendor of $380. At the end of the quarter the balance in inventory is $35,500. What is the cost of goods sold?
$23,100
$23,600
$21,720
$12,500
Purrfect Pets uses the perpetual inventory system. At the beginning of the quarter, Purrfect Pets has $48,000 in inventory. During the quarter the company purchases $10,600 of new inventory from a vendor, returned $1,000 of inventory to the vendor, and took advantage of discounts from the vendor of $380. At the end of the quarter the balance in inventory is $35,500. What is the cost of goods sold?
Explanation / Answer
Answer c. $21720 Caluclation of Cost of Goods Sold Op. inventory $48,000 Add: Purchases Purch. Of New Inventory $10,600 Less: Purchases Return ($1,000) Less: trade Discounts ($380) $9,220 Less: Closing inventory ($35,500) Cost of goods Sold $21,720
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