McLeod Corporation is a merchandising company. The year began with inventory of $32,000, Purchases for the year were $57,000, and the Ending Inventory was $19,000. What is the Cost of Goods Sold that would be reported on the income statement?

Question

Business

Tania Hall

23 June, 21:09

McLeod Corporation is a merchandising company. The year began with inventory of $32,000, Purchases for the year were $57,000, and the Ending Inventory was $19,000. What is the Cost of Goods Sold that would be reported on the income statement?

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Answers (1)

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Isiah Hess · Answer 1

The cost of goods sold is $70,000.

Explanation:

Cost of goods sold = Opening inventory + purchases - closing inventory

Cost of goods sold = 32,000 + 57,000 - 19,000

Cost of goods sold = $70,000

Thus, $70,000 will be reported on the income statement.