A company has beginning inventory for the year of $13,500. During the year, the company purchases inventory for $150,000 and ends the year with $27,000 of inventory. The company will report cost of goods sold equal to:

Question

Charlie Mcintosh

Business

25 May, 09:11

A company has beginning inventory for the year of $13,500. During the year, the company purchases inventory for $150,000 and ends the year with $27,000 of inventory. The company will report cost of goods sold equal to:

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Snickers · Answer 1

Cost Of Goods Sold = $136,500

Explanation:

Giving the following information:

A company has beginning inventory for the year of $13,500. During the year, the company purchases inventory for $150,000 and ends the year with $27,000 of inventory.

To calculate the cost of goods sold, we need to use the following formula:

COGS = beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS = 13,500 + 150,000 - 27,000 = $136,500