Question

Stear Corp. has an opening inventory of $2,500. During the year, it made purchases worth $55,000. At the end of the accounting period, the inventory was worth $1,250. What was the cost of goods sold?

A.
$57,500
B.
$56,250
C.
$53,750
D.
$55,000

Answer 1

B. 56,250

Step-by-step explanation:

"Beginning inventory of 2,500 plus purchases of 55,000 minus ending inventory of 1,250 = 56,250 of cost of goods sold."