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Elm Corporation is a merchandising company. The year began with inventory of $21,000, Purchases for the year were $46,000, and the Ending Inventory was $8,000. What is the Cost of Goods Sold that would be reported on the income statement

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abiolataiwo2015

Answer:

$59,000

Explanation:

Calculation to determine the Cost of Goods Sold that would be reported on the income statement

Using this formula

Cost of Goods Sold=Purchases for the year+beginning Inventory)-Ending Inventory

Let plug in the formula

Cost of Goods Sold=($46,000+$21,000) - $8,000

Cost of Goods Sold=$67,000-$8,000

Cost of Goods Sold=$59,000

Therefore the Cost of Goods Sold that would be reported on the income statement is $59,000