Question

At the beginning of the year, Bennett Supply has inventory of $3,500. During the year, the company purchases an additional $12,000 of inventory. An inventory count at the end of the year reveals remaining inventory of $4,000. What amount will Bennett report for cost of goods sold?

Answer 1

Answer:

Cost of goods sold is $ 11,500

Explanation:

cost of goods sold:

Opening stock: $3,500.00

Purchases: $12,000.00

Closing stock: $ 4,000.00

sales= Opening Stock+Purchases- Closing stock

=($3500+$12,000)-4000

$15,500-$4000= $11,500.00

Cost of goods sold= $11,500.00