Maggie's Antiques and Collectibles opened with $14 000 beginning inventory. Maggie purchased an additional $5500 in antiques and sold all but $7500. What is Maggie's cost of goods sold?
A) $27 000
B) $12 000
C) $19 500
D) $13 000
E) None of these

Question

Quizplus · Accepted Answer

Maggie's cost of goods sold (COGS) is calculated by adding the beginning inventory ($14,000) to the purchases ($5,500) to get the goods available for sale ($19,500), and then subtracting the ending inventory ($7,500) from this total. This gives a COGS of $12,000.

Maggie's Antiques and Collectibles Opened with $14 000 Beginning Inventory