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Desired ending inventory is 25% more than beginning inventory. If purchases total $160,000, which of the following statements is true regarding cost of goods sold

Desired ending inventory is 25% more than beginning inventory. If purchases total $160,000, which of the following statements is true regarding cost of goods sold (COGS)?

A.

COGS will be less than purchases.

B.

COGS will equal $55,000.

C.

COGS will exceed cost of goods available for sale.

D.

COGS will exceed purchases.

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