Destiny Industries Reports Beginning Inventory of $254,000, Purchases of $559,000

question 56

Multiple Choice

Destiny Industries reports beginning inventory of $254,000, purchases of $559,000, and ending inventory of $198,000. What is the cost of goods sold?

• A) $813,000
• B) $503,000
• C) $615,000
• D) $1,011,000

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Definitions:

Recover

To regain or obtain compensation or restitution through legal means, often after a loss or injury.

Life Insurance Policy

A contract between an individual and an insurance company, promising payment to named beneficiaries upon the insured person's death.

Cash Surrender Value

The amount that the insurer has agreed to pay to the insured if a life insurance policy is canceled before the insured’s death.

Term Insurance

A type of life insurance policy for which premiums are paid for a specified term and payment is made by the insurer only if the insured dies within the term period.