If beginning inventory was $25 000, purchases during the period totalled $50 000, freight-in was $1000 and ending inventory was $19 000, calculate the cost of sales?

Question

Quizplus · Accepted Answer

To calculate the cost of sales, we need to use the formula:

Beginning Inventory + Purchases + Freight-In - Ending Inventory = Cost of Sales

Substituting the given values, we get:

$25 000 + $50 000 + $1000 - $19 000 = Cost of Sales

Simplifying the expression, we get:

$56 000 = Cost of Sales

Therefore, the correct answer is option C) $57 000.

If Beginning Inventory Was $25 000, Purchases During the Period