Compute the cost of goods sold for the prior year

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Reference no: EM13792260

Mountain Mabel's is a small general store located just outside of Yellowstone National Park. The store uses a periodic inventory system. Every January 1, Mabel and her husband close the store and take a complete physical inventory while watching the Rose Bowl Parade on television. The inventory balance on January 1 of the prior year was $6,240, and the inventory balance on December 31 was $4,560. Sales were $150,000 during the prior year, and purchases were $74,400.

a. Compute the cost of goods sold for the prior year.

Reference no: EM13792260

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