At the beginning of the year, Bryers Incorporated reports inventory of $7,400. During the year, the company purchases additional inventory for $22,400. At the end of the year, the cost of inventory remaining is $9,400. Calculate cost of goods sold for the year.
At the beginning of the year, Bryers Incorporated reports inventory of $7,400. During the year, the company purchases additional inventory for $22,400. At the end of the year, the cost of inventory remaining is $9,400. Calculate cost of goods sold for the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![**Brief Exercise 6-3: Calculate Cost of Goods Sold (LO6-2)**
At the beginning of the year, Bryers Incorporated reports inventory of $7,400. During the year, the company purchases additional inventory for $22,400. At the end of the year, the cost of inventory remaining is $9,400. Calculate the cost of goods sold for the year.
**Explanation:**
To calculate the cost of goods sold (COGS), use the formula:
\[ \text{COGS} = \text{Beginning Inventory} + \text{Purchases} - \text{Ending Inventory} \]
For Bryers Incorporated:
- Beginning Inventory = $7,400
- Purchases = $22,400
- Ending Inventory = $9,400
\[ \text{COGS} = \$7,400 + \$22,400 - \$9,400 \]
Perform the calculations to find the cost of goods sold.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F719f094d-b52e-47ff-b97b-e8618ddb0b78%2F912da56c-6a80-4f35-9cf2-cc4eb0029c84%2Fsrgyzaj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Brief Exercise 6-3: Calculate Cost of Goods Sold (LO6-2)**
At the beginning of the year, Bryers Incorporated reports inventory of $7,400. During the year, the company purchases additional inventory for $22,400. At the end of the year, the cost of inventory remaining is $9,400. Calculate the cost of goods sold for the year.
**Explanation:**
To calculate the cost of goods sold (COGS), use the formula:
\[ \text{COGS} = \text{Beginning Inventory} + \text{Purchases} - \text{Ending Inventory} \]
For Bryers Incorporated:
- Beginning Inventory = $7,400
- Purchases = $22,400
- Ending Inventory = $9,400
\[ \text{COGS} = \$7,400 + \$22,400 - \$9,400 \]
Perform the calculations to find the cost of goods sold.
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