Question

At the beginning of the year, Bryers Incorporated reports inventory of $8,000. During the year, the company purchases additional inventory for $23,000. At the end of the year, the cost of inventory remaining is $10,000. Calculate cost of goods sold for the year.

Answer 1

Answer:

Cost of Goods sold is $21,000

Explanation:

Cost of goods sold is the actual cost of manufacturing or purchasing of a product which is sold during the period. It includes all the costs directly incurred in the production / purchase of the product.

Cost of goods sold

Beginning Inventory                  $8,000    

add: Purchases for the period  $23,000

Less: Closing Inventory             $10,000

Cost of Goods sold                    $21,000