- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 6. Analysis of Inventories
- Subject 1. Inventory Valuation
CFA Practice Question
The following information is available for Frank Corporation for 2015:
Beginning Inventory: $50,000
Purchases: $160,000
Ending Inventory: $60,000
B. $210,000
C. $150,000
Sales: $250,000
Beginning Inventory: $50,000
Purchases: $160,000
Ending Inventory: $60,000
Frank Corporation's cost of goods sold for 2015 is ______.
A. $160,000
B. $210,000
C. $150,000
Correct Answer: C
Cost of goods sold is the beginning inventory ($50,000) plus purchases ($160,000) less ending inventory ($60,000).
User Contributed Comments 3
| User | Comment |
|---|---|
| rainatt | NOTHING ABOUT SALES |
| myanmar | note the master-equation: EI=BI+purch.-COGS |
| johntan1979 | P=C+E-B |