Question

Exercise 6-1B Calculate cost of goods sold (LO6-2) A company begins the year with inventory of $53,000 and ends the year with inventory of $43,000. During the year, the company has four purchases for the following amounts. Purchase on February 17 $ 208,000 Purchase on May 6 128,000 Purchase on September 8 158,000 Purchase on December 4 408,000 Required: Calculate cost of goods sold for the year.

Answer 1

Answer: $912,000

Explanation:

The cost of goods sold for the year will be:

Beginning inventory = $53,000

Add: Purchases = ($208,000 + $128,000 + $158,000 + $408,000) = $902,000

Cost of goods available for sale = $955,000

Less: Ending inventory = ($43,000)

Cost of goods sold = $912,000