Question

McLeod Corporation is a merchandising company. The year began with inventory of $32,000, Purchases for the year were $57,000, and the Ending Inventory was $19,000. What is the Cost of Goods Sold that would be reported on the income statement?

Answer 1

Answer:

The cost of goods sold is $70,000.

Explanation:

Cost of goods sold = Opening inventory + purchases - closing inventory

Cost of goods sold = 32,000 + 57,000 - 19,000

Cost of goods sold = $70,000

Thus, $70,000 will be reported on the income statement.