Question

Hoover Company had a beginning inventory of $18,000 at March 1, 2022. During the month, the company made purchases of $60,000. The inventory at the end of the month is $15,000. What is the cost of goods sold for the month of March?

Answer 1

The cost of goods sold (COGS) for the Hoover Company for the month of March is calculated using the formula: COGS = Beginning Inventory + Purchases - Ending Inventory. By plugging in the values, the COGS is determined to be $63,000.

Step-by-step explanation:

The question is about calculating the cost of goods sold (COGS) for the Hoover Company for the month of March. To calculate COGS, we use the following formula:

COGS = Beginning Inventory + Purchases - Ending Inventory

Now, apply the given figures:

• Beginning Inventory = $18,000
• Purchases during March = $60,000
• Ending Inventory = $15,000

Therefore, COGS would be:

$18,000 (Beginning Inventory) + $60,000 (Purchases) - $15,000 (Ending Inventory) = $63,000

The cost of goods sold for the Hoover Company for the month of March is $63,000.