During fiscal 2016, Mattel had sales of $5,456,650, total expenses of $5,138,628 and gross profit of $2,554,391. What was Mattel’s cost of sales for 2016? ($ in thousands) A. $2,102,065 thousand B. $5,138,628 thousand C. $2,902,259 thousand D. $ 903,944 thousand E. There is not enough information to calculate the cost of sales.

The correct answer is C

Explanation:

Cost of Sales or COGS is defined as the carrying value of the goods sold during the specific period or year.

The formula for computing the Cost of Sales is as:

Gross Profit = Sales - Cost of Goods Sold (COGS)

where

Sales is $5,456,650

Gross Profit is $2,554,391

Putting the values above:

$2,554,391 = $5,456,650 - Cost of Goods Sold (COGS)

So,

Cost of goods sold (COGS) = $5,456,650 - $2,554,391

Cost of goods sold (COGS) = $2,902,259

answer; post closing trial balance;

answer the amount a seller is paid minus the cost of production;