Use This Information to Answer the Following Question In Addition,beginning Merchandise Inventory Was $22,000 and Ending Merchandise Inventory

question 154

Multiple Choice

Use this information to answer the following question. $$\begin{array} {| l | r | r | } \hline \text { Account Name } & { \text { Debit } } & { \text { Credit } } \\\hline \text { Sales } & & 300,000 \\\text { Sales Retums and Allowances } & 10,000 & \\\text { Purcha5es } & 53,000 & \\\text { Purchases Returns and Allowances } & & 8,000\\\text { Freight-In } & 12,000 & \\\text { Selling Exgenses } & 30,000 & \\\text { General and Administrative Exgenses } & 110,000 &\\\hline\end{array}$$ In addition,beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Cost of goods sold for the period was

• A) $74,000.
• B) $62,000.
• C) $88,000.
• D) $58,000.

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Definitions:

Supply Chains

Complex networks of suppliers, manufacturers, and distributors that produce, handle, and distribute goods and services from origin to consumer.

Safety Inventory

Extra stock kept in storage to guard against uncertainty in demand or supply, ensuring that a company can meet customer orders without delays.

Forecasted Demand

An estimation of the quantity of a product or service that consumers will purchase in the future.

Forecasting Errors

The difference between actual outcomes and previously predicted values, typically observed in the context of demand forecasting or financial forecasts.