Question

Q 5.15: At the beginning of January 2017, a company reported inventory of $4,000. During the month, the company made purchases of $17,800. On January 31, 2017, a physical count of inventory reported $4,200 on hand. Find the cost of goods sold for the month.

Answer 1

Answer:

COGS= $17,600

Explanation:

Giving the following information:

Beginning inventory= $4,000

Purchase= $17,800

Ending inventory= $4,200

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

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

COGS= 4,000 + 17,800 - 4,200

COGS= 17,600