From the Following Details of a Merchandiser,calculate the Cost of Goods

question 188

Multiple Choice

From the following details of a merchandiser,calculate the Cost of Goods Sold.(Assume the merchandiser uses the periodic inventory system. )

• A)$115,650
• B)$65,900
• C)$113,900
• D)$54,650

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Definitions:

Overhead Costs

Expenses related to the day-to-day running of a business that cannot be directly attributed to creating a product or service, such as rent, utilities, and insurance.

Averaging Process

A method used in manufacturing or cost calculation where inputs or expenses over a period are averaged to determine a standard cost or value.

Absorption Costing

A cost accounting method that includes all manufacturing costs—direct materials, direct labor, and both fixed and variable manufacturing overhead—in the cost of a product.

Nonmanufacturing Costs

Expenses not directly related to the production of goods, such as selling, general, and administrative expenses.