(L.O. 3) The following amounts relate to the current year for the Ira Company:

Beginning inventory $ 20,000 Ending inventory 28,000 Purchases 166,000 Purchase returns 4,800 Transportation-out 6,000 The amount of cost of goods sold for the period is:

a. $169,200.

b. $162,800.

c. $153,200.

d. $147,200.

Approach and Explanation: Write down the computation model for cost of goods sold. Enter the amounts given and solve for the unknown.