Elm Corporation is a merchandising company.The year began with inventory of $35,100,Purchases for the year were $67,600,and the Ending Inventory was $18,200.What is the Cost of Goods Sold that would be reported on the income statement?

Question

Quizplus · Accepted Answer

Ending inventory = Beginning inventory + Purchases − Cost of goods sold
Cost of goods sold = Beginning inventory + Purchases − Ending inventory
= $35,100 + $67,600 − $18,200 = $84,500

Elm Corporation Is a Merchandising Company