Question
Cinnamon Buns Co. (CBC) started 2018 with $52,400 of merchandise on hand. During 2018, $281,000 in merchandise was purchased on account with credit terms of
Cinnamon Buns Co. (CBC) started 2018 with $52,400 of merchandise on hand. During 2018, $281,000 in merchandise was purchased on account with credit terms of 3/10 n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $9,600. Merchandise with an invoice amount of $3,900 was returned for credit. Cost of goods sold for the year was $314,000. CBC uses a perpetual inventory system.
What is cost of goods available for sale, assuming CBC uses the gross method?
Multiple Choice
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$339,100.
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$343,000.
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$330,787.
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$311,587.
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Managerial Accounting
Authors: Karen Braun, Linda S Bamber
2nd Edition
136091164, 978-0136091165
