A food inventory taken at the Inn on January 1, 1998, totaled $3,500. During the month the business purchased $32,000 worth of food products. Prior to business operation on February 1, 1998, the Inn calculated a food inventory of $4,200. The Inn brought in $112,000 in food sales during the month of January. What is the cost of food sold for the month of January?

Question

Quizplus · Accepted Answer

Beginning Inventory (Jan 1) = $3,500
Purchases during January = $32,000
Cost of Goods Available for Sale = $3,500 + $32,000 = $35,500
Ending Inventory (Jan 31) = $4,200

Cost of Goods Sold = Cost of Goods Available for Sale - Ending Inventory
Cost of Goods Sold = $35,500 - $4,200 = $31,300

A Food Inventory Taken at the Inn on January 1