Question

At the beginning of the year, Bryers Incorporated reports inventory of $7,700. During the year, the company purchases additional inventory for $22,700. At the end of the year, the cost of inventory remaining is $9,700. Calculate cost of goods sold for the year.

Answer 1

Answer: $20,700

Explanation:

beginning inventory (X)  = $7,700

purchased additional inventory (Y) = $22,700

ending inventory (Z) = $9,700

So first, we have to calculate Cost of goods available for sale (A), we add  beginning inventory (X) and purchased additional inventory (Y)

A = X + Y

A = 7,700 + 22,700

Cost of goods available for sale (A) = 30,400

NOW to get our Cost of goods sold for the year (B), we subtract ending inventory (Z) from cost of goods available for sale (A)

B = A - Z

B = 30,400 - 9,700

B =  20,700

therefore the cost of goods sold for the year is $20,700