Question

Gate Grocery's most popular candy bars cost $0.50 each and sells for $0.75. Management determined that it had purchased 3,000 candy bars in February. It began February with 200 bars and had 150 remaining at the end of February. How much is cost of goods sold for February?

Answer 1

The cost of goods sold for February is $1,525

Step-by-step explanation:

For computing the cost of goods sold, the following equation should be used which is shown below:

Cost of goods sold = Opening stock of candy bar + Purchase of candy bar - closing stock of candy bar

= 200 + 3,000 - 150

= 3,050 candy bars

Now, the total cost of good sold is equal to

= Cost of good sold × cost per candy bar

= 3,050 × $0.50

= $1,525

The sale price for per candy bar should not be taken because we have to compute the value at cost not at sale price. Thus, it would not be taken in the computation part.

Hence, the cost of goods sold for February is $1,525