A small gift shop has a beginning inventory that is valued at $8,500. If the additional inventory detailed in the box is purchased, and the ending inventory is valued at $1,500 after a certain period, what is the cost of goods sold over this period? Additional Inventory Purchased Item Cost Units Total puzzles $15.00 12 $180.00 shirts $18.00 15 $270.00 key chains $5.50 14 $77.00 Cost of Goods Sold = [?] Round to the nearest hundredth.
A small gift shop has a beginning inventory that is valued at $8,500. If the additional inventory detailed in the box is purchased, and the ending inventory is valued at $1,500 after a certain period, what is the cost of goods sold over this period? Additional Inventory Purchased Item Cost Units Total puzzles $15.00 12 $180.00 shirts $18.00 15 $270.00 key chains $5.50 14 $77.00 Cost of Goods Sold = [?] Round to the nearest hundredth.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cost of good sold over this period ?
![### Inventory Cost Calculation Exercise
A small gift shop has a beginning inventory that is valued at $8,500. If the additional inventory detailed in the box below is purchased, and the ending inventory is valued at $1,500 after a certain period, what is the cost of goods sold over this period?
#### Additional Inventory Purchased:
| Item | Cost | Units | Total |
|-----------|------|-------|----------|
| puzzles | $15.00 | 12 | $180.00 |
| shirts | $18.00 | 15 | $270.00 |
| key chains| $5.50 | 14 | $77.00 |
#### Cost of Goods Sold Calculation:
To calculate the Cost of Goods Sold (COGS), use the following formula:
\[ \text{COGS} = \text{Beginning Inventory} + \text{Purchases} - \text{Ending Inventory} \]
Where:
- **Beginning Inventory** = $8,500
- **Ending Inventory** = $1,500
The total purchases can be calculated from the table:
\[ \text{Total Purchases} = \$180.00 \, (\text{puzzles}) + \$270.00 \, (\text{shirts}) + \$77.00 \, (\text{key chains}) \]
\[ \text{Total Purchases} = \$527.00 \]
Now, substitute these values into the equation:
\[ \text{COGS} = \$8,500 + \$527.00 - \$1,500 \]
\[ \text{COGS} = \$7,527.00 \]
The Cost of Goods Sold over this period is:
\[ \boxed{\$7,527.00} \]
Round to the nearest hundredth if necessary.
---
Enter your answer in the field below and click "Enter" to submit.
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This example helps in understanding how to calculate the cost of goods sold, an essential concept in inventory and financial management.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F50cb15e6-c519-460a-a64d-c623613a1a44%2Ff2dcc88f-442a-4402-a216-04ec0f173ff8%2F4i7obnr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Inventory Cost Calculation Exercise
A small gift shop has a beginning inventory that is valued at $8,500. If the additional inventory detailed in the box below is purchased, and the ending inventory is valued at $1,500 after a certain period, what is the cost of goods sold over this period?
#### Additional Inventory Purchased:
| Item | Cost | Units | Total |
|-----------|------|-------|----------|
| puzzles | $15.00 | 12 | $180.00 |
| shirts | $18.00 | 15 | $270.00 |
| key chains| $5.50 | 14 | $77.00 |
#### Cost of Goods Sold Calculation:
To calculate the Cost of Goods Sold (COGS), use the following formula:
\[ \text{COGS} = \text{Beginning Inventory} + \text{Purchases} - \text{Ending Inventory} \]
Where:
- **Beginning Inventory** = $8,500
- **Ending Inventory** = $1,500
The total purchases can be calculated from the table:
\[ \text{Total Purchases} = \$180.00 \, (\text{puzzles}) + \$270.00 \, (\text{shirts}) + \$77.00 \, (\text{key chains}) \]
\[ \text{Total Purchases} = \$527.00 \]
Now, substitute these values into the equation:
\[ \text{COGS} = \$8,500 + \$527.00 - \$1,500 \]
\[ \text{COGS} = \$7,527.00 \]
The Cost of Goods Sold over this period is:
\[ \boxed{\$7,527.00} \]
Round to the nearest hundredth if necessary.
---
Enter your answer in the field below and click "Enter" to submit.
---
This example helps in understanding how to calculate the cost of goods sold, an essential concept in inventory and financial management.
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