An electronics retailer has a beginning-of-year inventory (at cost)of $400,000; its ending inventory (at cost)is $410,000.Yearly purchases are $700,000 and transportation charges equal $25,000.The retailer's cost of goods sold is ________.

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) is calculated as: Beginning Inventory + Purchases + Transportation Charges - Ending Inventory. So, $400,000 + $700,000 + $25,000 - $410,000 = $715,000.

An Electronics Retailer Has a Beginning-Of-Year Inventory (At Cost)of $400,000;