During AdCo's first year of operations, it purchases $125,000 of inventory on account for a total of $105,000. If AdCo's ending inventory is $25,000 and sales are $150,000, what is the cost of goods sold? a. $25,000 b. $50,000 c. $75,000 d. $100,000

During AdCo's first year of operations, it purchases $125,000 of inventory on account for a total of $105,000. If AdCo's ending inventory is $25,000 and sales are $150,000, what is the cost of goods sold? a. $25,000 b. $50,000 c. $75,000 d. $100,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

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Question

What is the cost of goods sold?

During AdCo's first year of operations, it purchases $125,000 of
inventory on account for a total of $105,000. If AdCo's ending
inventory is $25,000 and sales are $150,000, what is the cost of
goods sold?
a. $25,000
b. $50,000
c. $75,000
d. $100,000

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