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?

Question

Business

Trevor Stark

22 June, 14:37

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?

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Answers (1)

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Liliana Davenport · Answer 1

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