Clover Hardware sold a range of products. A few weeks ago, orders arrived for the garden center and outdoor living areas. 500 grills, purchased at a cost of $75 each, were distributed among 10 locations. 200 were sold for $175 each across all locations. The cost of goods sold totals:. a.) $37,500
b.) $2,500
c.) $35,000
d.) $15,000

a. $37,500

Explanation:

The formula for cost of goods sold is

Cost of goods sold = Opening stock + Purchases - Closing stock

Here, we were given the value of purchases only, which is $37,500

Therefore, cost of goods sold would be

= 500 grills purchased × cost of $75 each

Cost of goods sold = $37,500

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