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a company has beginning inventory for the year of $10,500. during the year, the company purchases inventory for $190,000 and ends the year with $27,000 of inventory. the company will report cost of goods sold equal to:



Answer :

The business will disclose the cost of goods sold of $1,73,500.

What is inventory?

Inventory refers to all the products, services, and supplies that a business keeps on hand with the intention of reselling them for a profit. Raw materials, work-in-progress (WIP), finished goods, maintenance, repair, and overhaul (MRO), and are the four forms of inventory that are most frequently employed (MRO). Understanding the various sorts of inventory you have will help you manage and handle it more efficiently.

Beginning inventory = $10,500

Purchase inventory = $190,000

Ending inventory = $27,000

So, the cost of products sold is given by Beginning inventory + Purchase inventory - Ending Inventory

By putting the value, we get,

$10,500 + $190,000 - $27,000

= $173,500

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