Answered

At the beginning of the year, Bryers Incorporated reports inventory of [tex]$\$[/tex] 7,700[tex]$. During the year, the company purchases additional inventory for $[/tex]\[tex]$ 22,700$[/tex]. At the end of the year, the cost of inventory remaining is [tex]$\$[/tex] 9,700$.

Calculate the cost of goods sold for the year.

[tex]\[
\text{Cost of Goods Sold} = \text{Beginning Inventory} + \text{Purchases} - \text{Ending Inventory}
\][/tex]



Answer :

GinnyAnswer
To determine the Cost of Goods Sold (COGS) for Bryers Incorporated, we will need to follow a systematic approach using the given data. The formula for calculating COGS is:

[tex]\[ \text{COGS} = \text{Beginning Inventory} + \text{Purchases} - \text{Ending Inventory} \][/tex]

Let's break down each step:

1. Beginning Inventory: This is the inventory at the start of the year.
[tex]\[ \text{Beginning Inventory} = \$7,700 \][/tex]

2. Purchases: This is the cost of additional inventory purchased during the year.
[tex]\[ \text{Purchases} = \$22,700 \][/tex]

3. Ending Inventory: This is the cost of the inventory remaining at the end of the year.
[tex]\[ \text{Ending Inventory} = \$9,700 \][/tex]

Now, we substitute these values into our COGS formula:

[tex]\[ \text{COGS} = \$7,700 + \$22,700 - \$9,700 \][/tex]

Next, perform the addition and subtraction:

4. Add Beginning Inventory and Purchases:
[tex]\[ \$7,700 + \$22,700 = \$30,400 \][/tex]

5. Subtract Ending Inventory:
[tex]\[ \$30,400 - \$9,700 = \$20,700 \][/tex]

Therefore, the Cost of Goods Sold (COGS) for Bryers Incorporated for the year is:
[tex]\[ \boxed{\$20,700} \][/tex]

This is the final calculated value for the COGS.

Other Questions