Question

A company has beginning inventory for the year of $12,000. During the year, the company purchases inventory for $120,000 and ends the year with $29,000 of inventory. The company will report cost of goods sold equal to: Multiple Choice $120,000. $137,000. $103,000. $149,000 g.

Answer 1

Answer:

$103,000

Explanation:

Data provided as per the question is given below

Beginning inventory = $12,000

Purchases inventory = $120,000

Ending inventory = $29,000

The computation of cost of goods sold is shown below:-

Cost of goods sold = Beginning inventory + Purchases inventory - Ending inventory

= $12,000 + $120,000 - $29,000

= $132,000 - $29,000

= $103,000