Chapter 5, Problem 5.12BE

To determine

Cost of goods sold: It indicates the costs involved for the inventory sold by the business in a specific period of time. Its mathematical representation is as below:

$\boxed{\text{Cost of Goods Sold}=\text{Beginning Inventory}+\text{Purchases}–\text{Ending Inventory}}$

To Compute: The amount of cost of goods sold for Company S.

To Calculate: The gross profit for Company S.