A company has $8,100 in net sales, $1,000 in gross profit, $2,300 in ending inventory and $1,900 in beginning inventory. The company's cost of goods sold is:
A)$7,100.
B)$6,200.
C)$5,800.
D)$5,200.

Question

Quizplus · Accepted Answer

Cost of Goods Sold (COGS) is calculated as Beginning Inventory + Purchases - Ending Inventory. Given Gross Profit = Net Sales - COGS, rearranging gives COGS = Net Sales - Gross Profit. Thus, COGS = $8,100 - $1,000 = $7,100.

A Company Has $8,100 in Net Sales, $1,000 in Gross