Question

A company has beginning inventory for the year of $13,000. During the year, the company purchases inventory for $140,000 and ends the year with $30,000 of inventory. The company will report cost of goods sold equal to:

Answer 1

Answer:

$123,000

Explanation:

Given that,

Beginning inventory for the year = $13,000

Inventory purchase during the year = $140,000

Ending inventory during the year = $30,000

Cost of goods sold:

= Beginning inventory for the year + Inventory purchase during the year - Ending inventory during the year

= $13,000 + $140,000 - $30,000

= $123,000