At the beginning of September 2018, Stella Company reported Inventory of $8,000. During the month, the company made purchases of $35,600. At September 30, 2018, a physical count of inventory reported $8,400 on hand. Cost of goods sold for the month is

Question

Quizplus · Accepted Answer

Cost of Goods Sold (COGS) is calculated as: Beginning Inventory + Purchases - Ending Inventory. Thus, $8,000 + $35,600 - $8,400 = $35,200.

At the Beginning of September 2018, Stella Company Reported Inventory