Question

Presented below is information for the month of January 2022. What is the cost of goods sold?

Answer 1

The cost of goods sold for the month of January 2022 cannot be determined from the information provided without specific details regarding the beginning and ending inventory, purchases, and any additional relevant data.

Step-by-step explanation:

To calculate the cost of goods sold (COGS), a comprehensive understanding of the inventory flow and relevant transactions during the month is required. The formula for COGS is:

`\[ \text{COGS} = \text{Beginning Inventory} + \text{Purchases} - \text{Ending Inventory} \]`

The information provided doesn't include details about the beginning and ending inventory or the amount of purchases made during January 2022. Without this information, it's impossible to calculate the cost of goods sold accurately.

In a typical scenario, one would need to know the value of the inventory at the beginning of the month, any additional purchases made during the month, and the value of the remaining inventory at the end of the month. Subtracting the ending inventory from the sum of the beginning inventory and purchases would give the cost of goods sold.

In conclusion, the absence of key details related to inventory transactions in January 2022 makes it impossible to determine the cost of goods sold. Accurate financial analysis and reporting require a complete set of data to ensure precision in calculations.