Question

Given the following information for a retailer, compute the cost of goods sold. Ending inventory. . . . . . . . . . . . . . . . . $5,500 Website maintenance. . . . . . . . . . . . . $7,200 Revenues. . . . . . . . . . . . . . . . . . . . . . . $65,000 Freight-in. . . . . . . . . . . . . . . . . . . . . . . $3,200 Import duties. . . . . . . . . . . . . . . . . . . . $1,600 Marketing expenses. . . . . . . . . . . . . $14,000 Delivery expenses. . . . . . . . . . . . . . . . $1,400 Purchases. . . . . . . . . . . . . . . . . . . $44,000 Beginning inventory. . . . . . . . . . . . . . . $4,200

Answer 1

Answer:

$47,500

Explanation:

Given that,

Ending inventory = $5,500

Website maintenance = $7,200

Revenues = $65,000

Freight-in = $3,200

Import duties = $1,600

Marketing expenses = $14,000

Delivery expenses = $1,400

Purchases = $44,000

Beginning inventory = $4,200

Cost of goods available for sale:

= Beginning inventory + Purchases + Freight-in + Import duties

= $4,200 + $44,000 + $3,200 + $1,600

= $53,000

Cost of goods sold:

= Cost of goods available for sale - Ending inventory

= $53,000 - $5,500

= $47,500