The following information was derived from the current year accounting records of Clem Co.:

| | Clem's Central Warehouse | Goods Held By Consignees |
|-------------------|--------------------------|--------------------------|
| Beginning Inventory | $110,000 | $12,000 |
| Purchases | $480,000 | $60,000 |
| Freight-in | $10,000 | |
| Transportation to Consignees | | $5,000 |
| Freight-out | $30,000 | $8,000 |
| Ending Inventory | $145,000 | $20,000 |

Clem's cost of sales was:

a) $485,000
b) $507,000
c) $455,000
d) $512,000

To calculate Clem Co.'s cost of sales, we start with the beginning inventory and add purchases and freight-in, then subtract ending inventory. The formula is:

Cost of Sales = Beginning Inventory + Purchases + Freight-in - Ending Inventory

For Clem's Clem's Goods:

Cost of Sales = $110,000 (beginning inventory) + $480,000 (purchases) + $10,000 (freight-in) - $145,000 (ending inventory)

Cost of Sales for Clem's Clem's Goods = $455,000

For Clem's Central:

Cost of Sales = $12,000 (beginning inventory) + $60,000 (purchases) + $5,000 (freight-in) - $20,000 (ending inventory)

Cost of Sales for Clem's Central = $57,000

Total cost of sales for Clem Co. = Cost of Sales for Clem's Clem's Goods + Cost of Sales for Clem's Central

Total cost of sales for Clem Co. = $455,000 (Clem's Clem's Goods) + $57,000 (Clem's Central)

Total cost of sales for Clem Co. = $512,000

Therefore, the correct answer for Clem Co.'s cost of sales is d) $512,000.

To know more about sales:

https://brainly.com/question/34661730

#SPJ4