Question

Jackson Co. began the year with $20,000 in inventory. During the year, the company purchased $80,000 worth of inventory. At the end of the year, $30,000 of inventory remained. What is the cost of goods sold for the year?

Answer 1

Answer:

The total cost of goods sold  = $70,000

Explanation:

Given:

Initial inventory at the start of the year for Jackson Co. = $20,000

Total cost of purchases made during the year = $80,000

Inventory remaining at the end of the year = $30,000

Solution:

Total inventory for Jackson Co. during the year = $\ 20,000+\ 80000= \ 100,000$

Inventory remaining at the end of the year = $30,000

The cost of the goods sold can be calculated by subtracting the remaining  inventory from the total inventory.

Thus, cost of goods sold can be given as :

⇒ $\ 100,000-\ 30,000$

⇒  $\ 70,000$

The total cost of goods sold  = $70,000