Do-It-Yourself Home Repair Shop started the accounting period with $10,000 worth of shovels in inventory.During the accounting period,it purchased $5,000 worth of shovels and sold $7,500 worth.What is its cost of goods sold?

Question

Quizplus · Accepted Answer

Cost of goods sold = beginning inventory (10,000)+ interim purchases (5,000)- ending inventory (10,000 + 5,000 - 7,500)

Do-It-Yourself Home Repair Shop Started the Accounting Period with $10,000