What is the cost of goods sold? General accounting Happy Hobbies uses the perpetual inventory system. At thebeginning of the month, Happy Hobbies has $42,000 ininventory. During the month, the company purchased$12,500 of new inventory from suppliers, returned $1,800 ofinventory to suppliers, and received discounts from suppliersof $400. At the end of the month, the balance in inventory is$34,000. What is the cost of goods sold?A. $8,000B. $18,300C. $19,700D. $20,500E. $16,500

Step 1: Definition of Cost of Goods Sold (COGS)COGS represents the direct costs attributable to the…

Answered: Happy Hobbies uses the perpetual…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 6EA: Logo Gear purchased $2,250 worth of merchandise during the month, and its monthly income statement...

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Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a cost of goods sold of $3,000. What was the beginning inventory if the ending inventory was $1,250?
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Trini Company had the following transactions for the month. Calculate the cost of goods sold dollar value for the period for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)

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