Inventory on January 1 and December 31 is $29,500 and $43,000, respectively. During the year, cash paid to suppliers of inventory is $85,000. If all purchases of inventory are for cash, how much is the current year's cost of goods sold?

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) can be calculated using the formula: COGS = Opening Inventory + Purchases - Closing Inventory. Plugging in the given values: COGS = $29,500 + $85,000 - $43,000 = $71,500.

Inventory on January 1 and December 31 Is $29,500 and $43,000