Question

XYZ Company has Beginning Inventory Php. 100,000, New Purchases

amounting to Php. 450,000 and Ending Inventory is Php. 35,000. Find the cost of

goods sold for XYZ Company.

Answer 1

Cost of Goods Sold = Beginning Inventory + New Purchases - Ending Inventory

= (Php. 100,000 + Php. 450,000) - Php. 35,000 = Php. 515,000

Cost of Goods Sold for XYZ Company = Php. 515,000