Question

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

Answer 1

Given,

inventory at start=10000

purchases=20000

inventory at close=5000

From,

Cost of goods sold=inventory at start+Purchases-inventory at close

cost of goods sold=10000+20000-5000

cost of goods sold=25000

The cost of goods sold is 25000