Answer:
$435,000
Explanation:
The first step is to calculate the purchases that was made
= $50,000 + $490,000 - $75,000
= $540,000-$75,000
= $465,000
Therefore the cost of goods sold can be calculated as follows
Cost of goods + ending inventory = beginning inventory + purchase.
Cost of goods + $290,000= $260,000 + $465,000
Cost of goods + $290,000=$725,000
Cost of goods sold = $725,000-$290,000
= $435,000
Hence the cost of goods sold in 20x2 is $435,000
