Question

Bravo Company had beginning inventory of $75,000, purchased merchandise during the period for $200,000, and had ending inventory of $16,000. How much was cost of goods sold?

Answer 1

$259,000

Explanation:

The relationship between inventory values and cost of goods sold is ...

starting inventory + added inventory - cost of goods sold = ending inventory

Then the cost of goods sold is ...

starting inventory + added inventory - ending inventory = cost of goods sold

$75,000 +200,000 -16,000 = cost of goods sold = $259,000