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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.
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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