At the beginning of September, 2014, GLF Company reported Inventory of $8,000. During the month, the company made purchases of $23,400. At September 30, 2014, a physical count of inventory reported $9,600 on hand. Cost of goods sold for the month is

Question

Quizplus · Accepted Answer

The cost of goods available for sale in September is calculated as follows:

Beginning inventory + Purchases = $8,000 + $23,400 = $31,400

The cost of goods sold can be calculated by subtracting the ending inventory from the cost of goods available for sale:

Cost of goods sold = Cost of goods available for sale - Ending inventory
Cost of goods sold = $31,400 - $9,600
Cost of goods sold = $21,800

Therefore, the answer is C) $21,800.

At the Beginning of September, 2014, GLF Company Reported Inventory