Question 21 Cost You own a store Beginning inventory on Janu

Question 21 Cost You own a store. Beginning inventory on January 1 was $4,000. Ending inventory on December 31 was $4,500. You was $46,000. Selling, general, and administrative (SGAA) costs for the year were $3,000 a) Compute the cost of goods sold (COGS) for the year statement for the year. purchased $25,000 of new merchandise during the year. Sales revenue for the

Solution

a) Cost of goods sold(COGS) for the year Working: Beginning Inventory $       4,000 Add:Purcase during the year $      25,000 Less:Ending Inventory $       4,500 Cost of goods sold $      24,500 b) Income statement Revenue $      46,000 COGS $     -24,500 Gross Margin $      21,500 SG&A costs $      -3,000 Profit $      18,500