Destiny Industries reports beginning inventory of 257 comma

Destiny Industries reports beginning inventory of

$ 257 comma 000$257,000

purchases of

$ 557 comma 000$557,000?,

and ending inventory of

$ 195 comma 000$195,000.

What is the cost of goods? sold?

Solution

Cost of Goods Available for Sale =  Beginning Inventory + Purchases = $257,000 + $557,000? = $814,000

Cost of Goods Sold = Cost of Goods Available for Sale - Ending Inventory = $814,000 - $195,000 = $619,000