A company has $4,200 in net sales, $3,500 in gross profit, $1,000 in ending inventory, and $1,600 in beginning inventory. The company's cost of goods sold is:

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) is calculated as: Beginning Inventory + Purchases - Ending Inventory. Here, Gross Profit = Net Sales - COGS. Given Gross Profit is $3,500 and Net Sales is $4,200, COGS = $4,200 - $3,500 = $700.

A Company Has $4,200 in Net Sales, $3,500 in Gross