Question

Al's Auto Accessories Store began an accounting period with an inventory of $3,500 worth of auto accessories. During the accounting period, Al bought another $2,000 worth of accessories, giving the shop a total inventory worth $5,500. At the end of the accounting period, Al's inventory was worth $1,500, which means the cost of goods sold during this period was ______

Answer 1

Answer:

$4000

Explanation:

The cost of goods sold is also referred to as the cost of sales.

COGS=Beginning Inventory+net Purchases −Ending Inventory

Cost of good issued: $ 3500

Net purchases: $ 2000

End of year Inventory: $1500

COGS=$3500+$2000-$1500

=$5500-$1500

=$4000