Cost of goods sold and gross profit rate

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Reference no: EM13136933

At the beginning of the year, Downtown Athletic had an inventory of $200,000. During the year, the company purchased goods costing $800,000. If Downtown Athletic reported ending inventory of $300,000 and sales of $1,050,000, their cost of goods sold and gross profit rate must be:

a) $500,000 and 52.4%

b) $700,000 and 33.3%

c) $500,000 and 33.3%

d) $700,000 and 66.7%

Reference no: EM13136933

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