Question

Beginning inventory was $50,000. Inventory purchased during the year cost $75,000. Inventory on hand at year-end was $40,000. Cost of goods sold was

Answer 1

Answer:

The Cost of Goods Sold or COGS for the period was $85000

Explanation:

The cost of goods sold is the value or cost of inventory that has been sold off during the period. The Cost of Goods Sold of COGS can be calculated as follows,

COGS = Opening Inventory  +  Purchases  -  Closing Inventory

COGS = 50000  +  75000  -  40000

COGS = $85000

So, the Cost of Goods Sold or COGS for the period was $85000