A company has sales of $380,400 and its gross profit is $159,900. Its cost of goods sold equals:.

The cost of goods sold of the company equals $220,500.

Explanation:

Cost of goods sold can be described as the carrying value of goods that a firm sold during a particular period.

Depending on the available data, cost of goods sold can be calculated using any of the following 2 formulas:

1. Cost of good sold = Beginning inventories + Purchases - Ending inventories

2. Cost of goods sold = Sales - Gross profit

Note that the second formula is derived from the gross profit formula (i.e. Gross profit = Sales - Cost of goods sold).

Since we are given sales of $380,400 and gross profit of $159,900, we then use the second formula as follows:

Cost of good sold = $380,400 - $159,900 = $220,500

Therefore, the cost of goods sold of the company equals $220,500.