Respuesta :
Cost of goods sold is calculated as Starting inventory minus Purchases minus Ending inventory company.
Cost of goods sold, or COGS
COGS = 7700 + 22700 - 9700 = 20700
The cost of goods sold is the entire amount your business spent on costs directly related to the sale of items.
The labor and materials necessary to make a product may be included in the cost of the goods sold. Sales costs specific to that product, such commissions, may also be included in your COGS. The accounting phrase for this is direct costs.
A cost that is common to your business, such as rent, the cost of a new machine, or general marketing charges, is one that is not totally dedicated to a specific item. These additional costs are categorized as overhead. rather than the price of the goods provided.
It's critical for business owners and managers to keep track of product cost. That is the lowest price at which a good may be sold and a profit still be made. Any extra margin is used to cover expenses and, eventually, generate a profit. Without knowing your COGS and break-even point, you cannot assess your profitability company.
COGS= $19,000
Providing the following details:
Inventory is reported as $6,000 by Bryers Incorporated.
Buying power = $21,000.
Ending stock = $8,000
We must apply the following calculation to determine the cost of products sold:
COGS is calculated as follows: COGS=ending finished inventory -cost of goods purchased company.
COGS= 6,000 + 21,000 - 8,000
COGS= $19,000
Learn more about goods hear :
https://brainly.com/question/27993769
#SPJ4
