Question

perpetual inventory system. At the beginning of the quarter, Mt. Rooster has $33,000 in inventory. During the quarter the company purchases $8,350 of new inventory from a vendor, returned $1,000 of inventory to the vendor, and took advantage of discounts from the vendor of $230. At the end of the quarter the balance in inventory is $28,000. What is the cost of goods sold

Answer 1

the cost of goods sold is $12,120

Step-by-step explanation:

The computation of the cost of goods sold is shown below:

Cost of goods sold = Beginning Inventory + inventory purchased - inventory returned to vendor - Discount - remaining inventory in closing

= $33,000 + $8,350 - $1,000 - $230 - $28,000

= $12,120

Hence, the cost of goods sold is $12,120