Cost of good sold over this period ? ### Inventory Cost Calculation ExerciseA 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** = $1,500The 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.

Introduction: The cost of goods sold (COGS) is any direct expense associated with the manufacturing…

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.