Question

Jeff has a business selling computers and computer parts on Amazon. An

inventory count at the beginning of December shows he has $5,800 of inventory
on hand. Over the month, he purchases another $3,200 of inventory. The
inventory total at the end of December shows he has $3,900 of inventory on
hand. Calculate the cost of goods sold
Your answer

Answer 1

$5,100

Step-by-step explanation:

The cost of goods sold of a business be calculated by the following equation:

+) Cost of goods sold = Beginning Inventory + Purchases During the Period – Ending Inventory

As given, we have:

+) The period is the month December

=> Beginning Inventory = The inventory count at the beginning of December = $5,800

Purchasing during the period = Purchasing over the month = $3,200

Ending Inventory = The inventory count at the end of December = $3,900

So that the costs of goods sold in December is:

Cost of goods sold = Beginning Inventory + Purchases During the Period – Ending Inventory

= $5,800 + $3,200 - $3,900 = $5,100