Question

Baxter Company's merchandise inventory at the start of 2014 was $85,000. The company purchased inventory during 2014 in the amount of $323,000, and its inventory at the end of the year was $102,000.What was Baxter's Cost of Goods Sold for 2014?1) $391,0002) $306,0003) $408,0004) $289,000

Answer 1

Cost of goods sold of Baxter's Company = 3,06,000

Explanation:

Cost of goods sold = +Purchase + Direct Exp+ Opening Inventory  - Closing Stock

85,000 + 3,23,000 - 1,02,000 = 3,06,000