{"id":35974,"date":"2024-04-23T07:29:06","date_gmt":"2024-04-23T07:29:06","guid":{"rendered":"https:\/\/www.greatassignmenthelp.com\/questions\/?p=35974"},"modified":"2024-04-23T07:29:06","modified_gmt":"2024-04-23T07:29:06","slug":"a-company-started-the-year-with-10000-of-inventory-purchases-for-resale-during-the-year-were-20000-inventory-on-december-31-is-5000-whats-the-cost-of-goods-sold","status":"publish","type":"post","link":"https:\/\/www.greatassignmenthelp.com\/questions\/a-company-started-the-year-with-10000-of-inventory-purchases-for-resale-during-the-year-were-20000-inventory-on-december-31-is-5000-whats-the-cost-of-goods-sold\/","title":{"rendered":"A company started the year with $10,000 of inventory. Purchases for resale during the year were $20,000. Inventory on December 31 is $5,000. What’s the cost of goods sold?"},"content":{"rendered":"

A company started the year with $10,000 of inventory. Purchases for resale during the year were $20,000. Inventory on December 31 is $5,000. What’s the cost of goods sold?<\/strong><\/p>\n

1: $5,000<\/p>\n

2: $10,000<\/p>\n

3: $25,000<\/p>\n

4: $30,000<\/p>\n

5: $35,000<\/p>\n

Answer: 3: $25,000<\/span><\/strong><\/p>\n

To calculate the cost of goods sold, we need to use the following formula:<\/span><\/p>\n

Cost of Goods Sold = Closing stock + Opening stock + Purchase on goods less the ending stock.<\/span><\/p>\n

Given:<\/span><\/p>\n

Beginning Inventory = $10,000<\/span><\/p>\n

In-stock shop goods for reselling during the year = $30,000<\/span><\/p>\n

Inventory (31st of December) at Day-end = $5,000<\/span><\/p>\n

Substituting the values in the formula::<\/span><\/p>\n

CCGS = 10.000 + 20,000 \u2013 5,000.<\/span><\/p>\n

Cost of Goods Sold = $30.000 (less) $5.000; ($30,000 – $5,000).<\/span><\/p>\n

Numbers of Goods Sold (COGS) = $25,000<\/span><\/p>\n

Consequently, as the price for the goods sold amounted to $25 thousand during the year,<\/span><\/p>\n

Detailed Calculations:<\/span><\/p>\n

Beginning Inventory: $10,000<\/span><\/p>\n

Add: Because I will buy goods by retailing: $20,000<\/span><\/p>\n

Goods available for sale: On top of all these benefits, Forgivable Loan Program also encourages individuals from disadvantaged backgrounds to pursue higher education by giving them relief from worrying about high student loan repayments.<\/span><\/p>\n

Subtract: Ending Inventory: $5,000<\/span><\/p>\n

Cost of Goods Sold: This equates to $25,000.<\/span><\/p>\n

The cost of goods sold includes the direct cost of the inventory that was sold each period of the year. It is calculated by considering initial inventory, stock acquisitions for the whole year, and finally final inventory.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

A company started the year with $10,000 of inventory. Purchases for resale during the year were $20,000. Inventory on December 31 is $5,000. What’s the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\nA company started the year with $10,000 of inventory. Purchases for resale during the year were $20,000. Inventory on December 31 is $5,000. What's the cost of goods sold?<\/title>\n<meta name=\"description\" content=\"A company started the year with $10,000 of inventory. Purchases for resale during the year were $20,000. Inventory on December 31 is $5,000. 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