Question

Cullumber Company sold goods with a total selling price of $801,000 during the year. It purchased goods for $381,000 and had beginning inventory of $65,000. A count of its ending inventory determined that goods on hand was $51,000. What was its cost of goods sold?

Answer 1

Answer:

Cost Of Goods Sold= $395,000

Explanation:

Giving the following information:

Purchased goods= $381,000

Beginning inventory= $65,000

A count of its ending inventory determined that goods on hand was $51,000.

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= 65,000 + 381,000 - 51,000

COGS= $395,000