Question

Given the following information, what is the cost of goods sold?

Line item description Amount
Purchases $33,897
Inventory, September 1 $6,640
Administrative expense $757
Rent revenue $946
Selling expense $730
Inventory, September 30 $4,667
Sales $48,270
Interest expense $1,032

a. $1,032

b. $33,253

c. $11,643

d. $35,870

Answer 1

To determine the Cost of Goods Sold (COGS), we sum the starting inventory and purchases and subtract the ending inventory. The correct answer is $35,870.

Step-by-step explanation:

To calculate the Cost of Goods Sold (COGS), we use the formula:Begin with the starting inventory at the beginning of the period (Inventory, September 1).Add purchases made during the period (Purchases).Subtract the ending inventory at the end of the period (Inventory, September 30).The starting inventory is $6,640, and the purchases are $33,897.

The ending inventory is $4,667. Applying these numbers:COGS = Starting Inventory + Purchases - Ending InventoryCOGS = $6,640 + $33,897 - $4,66COGS = $35,870So, the correct answer is d. $35,870.Write the final answer in 20 words: The cost of goods sold, given the provided figures, is $35,870.The cost of goods sold can be calculated by subtracting the cost of inventory at the end of the period from the sum of purchases and the cost of inventory at the beginning of the period. In this case, the purchases amount is $33,897 and the inventory at the start of the period is $6,640. The inventory at the end of the period is $4,667. Therefore, the cost of goods sold is $33,897 + $6,640 - $4,667 = $35,870.