Question

At the beginning of the year, Bryers Incorporated reports inventory of $6,000. During the year, the company purchases additional inventory for $21,000. At the end of the year, the cost of inventory remaining is $8,000. Calculate cost of goods sold for the year.

Answer 1

COGS= $19,000

Step-by-step explanation:

Giving the following information:

Bryers Incorporated reports inventory of $6,000.

Purchases= $21,000.

Ending inventory= $8,000.

To calculate the cost of goods sold, we need to use the following formula:

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

COGS= 6,000 + 21,000 - 8,000

COGS= $19,000