Ask Question
28 October, 00:39

A company has beginning inventory for the year of $12,000. During the year, the company purchases inventory for $150,000 and ends the year with $20,000 of inventory. The company will report cost of goods sold equal to:

+5
Answers (1)
  1. 28 October, 00:53
    0
    The cost of Goods Sold is $142,000

    Explanation:

    The equation for determining the ending inventory is:

    Opening Inventory + Purchases - Closing Inventory = Cost of Goods sold

    By solving the equation with the available data;

    $12,000 + $150,000 - $20,000 = $142,000

    so the cost of goods sold as calculated is $ 142,000.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A company has beginning inventory for the year of $12,000. During the year, the company purchases inventory for $150,000 and ends the year ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers