Baxter Company's merchandise inventory at the start of 2014 was $85,000. The company purchased inventory during 2014 in the amount of $323,000, and its inventory at the end of the year was $102,000.
What was Baxter's Cost of Goods Sold for 2014?

Question

Quizplus · Accepted Answer

Cost of Goods Sold (COGS) is calculated as: Beginning Inventory + Purchases - Ending Inventory. Thus, COGS = $85,000 + $323,000 - $102,000 = $306,000.

Baxter Company's Merchandise Inventory at the Start of 2014 Was