Question

Given the information on inventory:

1. Inventory, January 1: $10,890
2. Purchases: $49,610
3. Inventory, December 31: $8,300
Calculate the cost of goods sold.

a) $48,200

b) $50,800

c) $52,500

d) $56,200

Answer 1

To calculate the cost of goods sold, you can use the formula: Cost of Goods Sold = Inventory, January 1 + Purchases - Inventory, December 31. Substituting the given values, the cost of goods sold is $52,200.

Step-by-step explanation:

To calculate the cost of goods sold, we can use the formula:

Cost of Goods Sold = Inventory, January 1 + Purchases - Inventory, December 31

Substituting the given values:

Cost of Goods Sold = $10,890 + $49,610 - $8,300 = $52,200

Therefore, the cost of goods sold is $52,200.