If a company has ending inventory of $25,000,purchases during the year of $95,000,and beginning inventory of $30,000,cost of goods sold equals $90,000.

Question

Quizplus · Accepted Answer

To calculate cost of goods sold, we can use the following formula:
Beginning inventory + Purchases - Ending inventory = Cost of goods sold
Substituting the given values, we get:
30,000 + 95,000 - 25,000 = 100,000
Therefore, the cost of goods sold is $100,000 and not $90,000. Hence, the answer is false.

If a Company Has Ending Inventory of $25,000,purchases During the Year