Question

a candle shop started the accounting period with inventory for which it paid $5,000. during the accounting period, it spent $4,000 on new candles. at the end of the period, the shop's inventory is worth $5,500. in this scenario, what is the cost of goods sold?

Answer 1

The cost of goods sold is $9,000 ($5,000 + $4,000).

The total of all direct costs incurred in producing a good constitutes the cost of goods sold (GOGS). It can be found on an income statement and usually includes money spent on labour and raw supplies. It excludes commissions connected to marketing, sales, or distribution.

Cost of goods sold comprises expenses like labour and raw materials that change based on how much product you generate. It excludes indirect expenditures, such as office expenses, administrative salaries, and marketing costs, which the company must pay regardless of how much product is generated.

To know more about COGS here

https://brainly.com/question/13998593

#SPJ4