Question

Astor Inc. is a trading firm. It has $5500 worth of inventory at the beginning of the year. It made purchases worth $10,700 during the year. At the end of the year, the stock was valued at $3700. What is the value of Astor Inc.'s cost of goods sold for the year?

Answer 1

The cost of goods sold for Astor Inc. for the year, calculated using the opening inventory, purchases, and closing inventory values, is $12,500.

Step-by-step explanation:

To calculate Cost of Goods Sold (COGS) for Astor Inc., we can use the following formula:

COGS = Opening Inventory + Purchases - Closing Inventory

Given that Astor Inc. has an opening inventory of $5500, made purchases amounting to $10,700, and has a closing inventory of $3700, we can plug these values into the formula:

COGS = $5500 + $10,700 - $3700

COGS = $16,200 - $3700

COGS = $12,500

Therefore, the value of Astor Inc.'s cost of goods sold for the year is $12,500.