1. The cost incurred (done) by a company to acquire inventory and then sold to c
ID: 2554164 • Letter: 1
Question
1. The cost incurred (done) by a company to acquire inventory and then sold to customers is called the cost of goods sold. a. True b. False 2. The cost of goods sold will be shown on? a. Balance Sheet b. Income Statement (merchandising company's) c. Statement of Retained Earnings d. None of the above 3. What are the words for sales minus cost of goods sold? 4. How much is the cost of goods sold when the Sales amount is $275,000 and the Gross Profit is $135,000? a. $410,000 b. $137,500 c. $140,000 d. $135,000Explanation / Answer
1.The cost incurred by the company to acquire inventory and then sold to customers is called the cost of goods sold.
Answer:True
If we purchase goods for $1000 ,spend $20 on transporting the goods and sell for $1200, the cost of goods sold will be $1020
2.The cost of goods sold will be shown on
Answer:
b. Income Statement.
Income statement will show sales revenue and cost of goods sold to arrive at gross profit(difference between sales revenue and cost of goods sold)
3. Words for sales minus cost of goods sold are:
Gross Profit, Gross margin, Sales profit
4.
A
Sales Amount
$275,000
B=A-C
Cost of goods sold
$140,000
C=A-B
Gross Profit
$135,000
Cost of goods sold
$140,000
Answer:
c.$140,000
A
Sales Amount
$275,000
B=A-C
Cost of goods sold
$140,000
C=A-B
Gross Profit
$135,000
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