contestada

At the end of Year 1, Voss Company had $8,000 of inventory. During Year 2 the following events occurred: (1) Voss Company purchased $10,000 of inventory with cash. (2) Sold $15,000 of inventory for $20,000 cash to customers. (3) At the end of the year, a physical count of the inventory, it found only $1,000 of inventory on hand. What would Voss Company report for cost of goods sold on the Year 2 income statement?

Respuesta :

Answer:

$15,000

Explanation:

Year 2

Opening inventory = $8,000

Purchases = $10,000

Sales = $15,000 (cash received = $20,000)

Inventory count at year end = $1,000

Amount to be written to p/l = 8000 + 10000 - 1000

                                             = $17,000

However, the cost of goods sold is $15,000 while the remaining $2,000 is recognized as inventory write down.

dubeyshailja64

The cost of goods to be reported in the income statement will be $17,000.

What is the Cost of goods sold?

Cost of goods sold (COGS) generally refers to the direct cost incurred on the production of the goods that are sold by the company. The basic formula to calculate the cost of goods sold is:

[tex]\rm COGS = Beginning\:inventory+Purchase- Closing\:inventory[/tex]

Given:

Inventory at the end of year 1 is $8,000

Purchases during year 2 are $10,000

Closing inventory is $1,000

Therefore the COGS will be:

[tex]\rm COGS = \$8,000+\$10,000-\$1000\\\\\rm COGS = \$17,000[/tex]

Learn more about the cost of goods sold here:

https://brainly.com/question/24561653

Otras preguntas