Question

A record store that sells $1,000 woth of CDs per day to 40 customers ( the average cost of goods sold per unit is $12.50) How much is the store COGS? ____________________

Answer 1

Answer:

$500

Explanation:

COGS or the cost of goods sold is the total cost of all goods sold in a period. It is the direct cost of productions and include direct labor costs, direct materials, and direct overhead costs.

In this case, The average cost of goods sold per unit is $12.50. The business sells to 40 customers. The totals cost of goods sold or the COGS will be

=$12.50 x 40

=$500