A manufacturing company conducts a physical inventory count and finds \$70,000 worth of inventory. If the beginning inventory was \$60,000, purchases were \$50,000, and purchase returns were \$10,000, what is the cost of goods sold?

• A. \$40,000
• B. \$50,000
• C. \$60,000
• D. \$30,000

Answer: (D)