Law's 2021 cost of sales wasa. $534,000b. $500,000c. $539,000d. $470,000 The following information was derived from the 2021 accounting records of Law Co.:Law's GoodsHeld by Consignees$14,00070,000Law's Central WarehouseBeginning inventoryPurchases$130,000475,00010,000Freight-inTransportation to consigneesFreight-outEnding inventory5,0008,00030,000145,00020,000

Cost of sales is computed by the formula:- Cost of sales = Beginning Inventory + Purchases + Freight…

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Business

Accounting

Law's 2021 cost of sales was a. $534,000 b. $500,000 c. $539,000 d. $470,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Law's 2021 cost of sales was

a. $534,000

b. $500,000

c. $539,000

d. $470,000

The following information was derived from the 2021 accounting records of Law Co.:
Law's Goods
Held by Consignees
$14,000
70,000
Law's Central Warehouse
Beginning inventory
Purchases
$130,000
475,000
10,000
Freight-in
Transportation to consignees
Freight-out
Ending inventory
5,000
8,000
30,000
145,000
20,000

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