S2 10 Compute cost of goods sold for a merchandiser Learning

S2. 10 Compute cost of goods sold for a merchandiser (Learning Objective 5) Given the following information for Circuits Plus, an electronics e-tailer, compute the cost of goods sold. Website maintenance. Delivery expense. Freight-in. Import duties... urchases... Ending inventory.. Revenues.... Marketing expens. Beginning inventory. $7,000 1,000 3,000 1,000 40,000 5,500 ...60,000 10,000 3,500

Solution

Cost of goods sold = (opening inventory + purchases)-closing inventory

Cost of goods available for sale = opening inventory + purchases+ freight in + import duties

Given that ;

     opening inventory = 3,500; closing inventory = 5,500; purchases= 40,000; freight in =3,000;

         import duty = 1,000

   cost of goods sold = 3,500+40,000+3,000+1,000-5,500

                                     = 47,500-5,500

                                     = 42,000

         Cost of goods sold =42,000