Question

The following information is available for Wagner Corporation for the current year: Sales $500,000 Beginning inventory 180,000 Ending inventory 95,000 Advertising 45,000 Purchases 215,000 How much is the cost of goods sold?

1) $440,000
2) $345,000
3) $300,000
4) $200,000

Answer 1

The cost of goods sold for Wagner Corporation is $300,000.

Step-by-step explanation:

The cost of goods sold can be calculated using the formula:

Cost of Goods Sold = Beginning Inventory + Purchases - Ending Inventory

Plugging in the numbers given in the question:

Cost of Goods Sold = $180,000 + $215,000 - $95,000 = $300,000

Therefore, the correct answer is 3) $300,000.