At the beginning of the quarter Purrfect Pets has $30,000 in inventory.During the quarter the company purchases $7,900 of new inventory,has purchase returns of $700,and purchase discounts of $200.At the end of the quarter the balance in the Inventory account is $26,500.What is the cost of goods sold?

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) is calculated as: Beginning Inventory + Purchases - Purchase Returns - Purchase Discounts - Ending Inventory. So, $30,000 + $7,900 - $700 - $200 - $26,500 = $10,500.

At the Beginning of the Quarter Purrfect Pets Has $30,000