Gump Supplies Has the Following Information

question 101

Multiple Choice

Gump Supplies has the following information:
Beginning inventory $39,000
Inventory purchases 92,000
Transportation-in 11,300
An inventory count taken at year end indicates that inventory with a cost of $56,000 is on hand as of December 31, 2017. Assume that inventory purchases and transportation-in are both reflected in the inventory account, which shows an ending balance of $59,000. What is the amount of the cost of goods sold?

• A)$123,300
• B)$83,300
• C)$60,700
• D)$100,700

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Definitions:

Pith

The soft or spongy tissue in the center of stems in vascular plants, involved in storage and transport of nutrients.

Cortex

The outer layer of an organ or structure, such as the cerebral cortex of the brain or the cortex of the kidney, involved in various functions depending on the organ.

Intercellular Spaces

Gaps or areas between the cells of organisms, which in plants are often filled with air or fluid for the exchange of gases.

Cortex

The outer layer of various organs or body structures, such as the brain, kidneys, and hair.