Assuming that net cost of purchases was $58,000 during the year and that ending merchandise inventory was $1,000 less than the beginning merchandise inventory of $12,500,how much was cost of goods sold?

Question

Quizplus · Accepted Answer

Cost of Goods Sold (COGS) is calculated as: Beginning Inventory + Purchases - Ending Inventory. Here, Beginning Inventory is $12,500, Purchases are $58,000, and Ending Inventory is $11,500 ($12,500 - $1,000). So, COGS = $12,500 + $58,000 - $11,500 = $59,000.

Assuming That Net Cost of Purchases Was $58,000 During the Year