Question

A company has beginning inventory for the year of $13,500. During the year, the company purchases inventory for $150,000 and ends the year with $27,000 of inventory. The company will report cost of goods sold equal to:

Answer 1

Answer:

Cost Of Goods Sold= $136,500

Explanation:

Giving the following information:

A company has beginning inventory for the year of $13,500. During the year, the company purchases inventory for $150,000 and ends the year with $27,000 of inventory.

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

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

COGS= 13,500 + 150,000 - 27,000= $136,500

Answer 2

Answer:

$136,500

Explanation:

Beginning inventory $13,500

Purchases inventory $150,000

Ending Inventory $27,000

Cost of goods sold = beginning inventory + purchases − ending inventory

$13,500 + $150,000−$27,000 = $136,500

Therefore the company will report cost of goods sold equal to $136,500