Question

Baxter Company's merchandise inventory at the start of 2014 was $85,000. The company purchased inventory during 2014 in the amount of $323,000, and its inventory at the end of the year was $102,000. What was Baxter's Cost of Goods Sold for 2014?

Answer 1

$306,000

Step-by-step explanation:

The formula and the computation of the cost of good sold is shown below:

Cost of goods sold = Opening balance of merchandise inventory + Purchase made - ending balance of merchandise inventory

= $85,000 + $323,000 - $102,000

= $306,000

Basically we have applied the above formula to find out the cost of goods sold