Carson Company Has an Inventory Turnover of 12

question 8

Multiple Choice

Carson Company has an inventory turnover of 12.75,and its inventory amounts to $2,400,000.What is the amount of cost of goods sold?

• A)$30,600,000
• B)$188,235
• C)$26,666,667
• D)$51,000

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Definitions:

Discount

A reduction from the usual cost of something, or an amount deducted from the regular price or interest rate.

Perpetual Inventory System

An inventory accounting technique that immediately logs the sale or acquisition of inventory using computerized point-of-sale systems and enterprise asset management software.

Cost of Goods Sold

Cost of Goods Sold is the direct costs attributable to the production of the goods sold by a company, including material and labor costs.