Question

Bloomington, Inc. is a merchandiser of stone ornaments. The company sold 6,000 units during the year. The company has provided the following information:Sales Revenue $566,000Purchases (excluding freight in) 300,000Selling and Administrative Expenses 69,000Freight In 13,000Beginning Merchandise Inventory 44,000Ending Merchandise Inventory 43,000What is the cost of goods sold for the year?

Answer 1

Answer:

COGS= $314,000

Explanation:

The company has provided the following information:

Sales Revenue $566,000

Purchases (excluding freight in) 300,000

Selling and Administrative Expenses 69,000

Freight In 13,000

Beginning Merchandise Inventory 44,000

Ending Merchandise Inventory 43,000

We need to calculate the cost of goods sold (COGS)

COGS= beginning merchandise inventory + purchases - ending merchandise inventory

COGS= 44000 + (300000+13000) - 43000= $314,000