If a company has a total of $358,241 in food inventory at the beginning of the month, purchases $445,101 of goods during the month and has $627,333 remaining at the end of the month, what is their cost of food sold? There were no departmental transfer or other credits during the month.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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  • If a company has a total of $358,241 in food inventory at the beginning of the month, purchases $445,101 of goods during the month and has $627,333 remaining at the end of the month, what is their cost of food sold? There were no departmental transfer or other credits during the month.
 
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Formula:

Opening stock + purchases - Sales = Closing stock

Ending inventory is to be calculated by adding purchases to the beginning inventory and deducting the sales from the value obtained.

 

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