Porches, Inc. sells lawn furniture. Selected financial information for the most recent year follows. Beginning merchandise inventory on January 1 was $33,700.
Ending merchandise inventory on December 31 was $35,700.
Purchases during the year were $92,900.
Selling and administrative expenses were $75,500.
Sales for year were $262,200.
What was cost of goods sold?

Question

Quizplus · Accepted Answer

Cost of Goods Sold (COGS) is calculated as: Beginning Inventory + Purchases - Ending Inventory. Therefore, COGS = $33,700 + $92,900 - $35,700 = $90,900.