Question

You business sells widgets to customers. On May 1, you purchase 50 widgets at $4 each from your widget supplier. During May You sell 37 widgets to your customers for $10 each. What is the Cost of Goods Sold for May

Answer 1

COGS= $148

Step-by-step explanation:

Giving the following information:

Purchase= 50 widgets at $4 each

Sales= 37 widgets

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= 0 + 50*4 - 13*4

COGS= $148