Lexington Company updates its inventory periodically.The company's beginning inventory was $1,000 and purchases were $5,000 during the year.The company's ending inventory count was $2,000.What was the amount of its cost of goods sold?
A)$6,000
B)$4,000
C)$8,000
D)$2,000

Question

Quizplus · Accepted Answer

Cost of goods sold = Beginning inventory + Purchases − Ending inventory
= $1,000 + $5,000 − $2,000 = $4,000

Lexington Company Updates Its Inventory Periodically