Baker Fine Foods has beginning inventory for the year of $12,000.During the year,Baker purchases inventory for $150,000 and ends the year with $20,000 of inventory.Baker will report cost of goods sold equal to:

Question

Quizplus · Accepted Answer

Cost of Goods Sold (COGS) is calculated as: Beginning Inventory + Purchases - Ending Inventory. Therefore, COGS = $12,000 + $150,000 - $20,000 = $142,000.

Baker Fine Foods Has Beginning Inventory for the Year of $12,000.During