Question

At the beginning of the year, Bryers Incorporated reports inventory of $6,200. During the year, the company purchases additional inventory for $21,200. At the end of the year, the cost of inventory remaining is $8,200. Calculate cost of goods sold for the year.

Answer 1

Cost of Goods Sold = $19200

Step-by-step explanation:

The cost of goods sold or COGS is the cost of inventory that the business has sold for the period. The cost of goods sold can be calculated as follows,

Cost of Goods sold = Opening Inventory + Purchases for the year - Closing Inventory

Cost of Goods Sold = 6200 + 21200 - 8200

Cost of Goods Sold = $19200