The following information is for X Company, a merchandiser, for 2016:

Revenue			$372,233
Merchandise purchases			107,015
Receiving costs			23,577
Store rent			27,741
Utility costs			12,378
Advertising costs			27,485
Store manager salary			18,308
Cashier salaries			10,998

The Merchandise Inventory account had a January 1 balance of $24,626 and a December 31 balance of $39,286. What was Cost of Goods Sold in 2016?

I tried:

Direct materials used=inventory begining+purchases-Ending

=$24,626+$107,015-$39,286

=$92,355

Cost of Goods Sold =direct materials cost+receiving costs+utility costs+store rent+store manager salary

=$92,355+$23,577+$12,378+$27,741+$18,308

=$174,359

and it was wrong.

I also tried:

1. The computation of direct materials used is correct;

2. In Cost of Goods sold, store manager salary will not come. Direct expenses are those which aid in production of goods. As auch, the wages of workers engaged in produxtion only will form part of cost of good sold and not store manager's salary.

Hence, Cost of Goods Sold =direct materials cost+receiving costs+utility costs+store rent

=$92,355+$23,577+$12,378+$27,741

=$ 156,051

and that was wrong too.