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A small gift shop has a beginning inventory valued at [tex]$\$[/tex]9,200[tex]$. If the additional inventory detailed in the box is purchased, and the ending inventory is valued at $[/tex]\[tex]$1,700$[/tex] after a certain period, what is the cost of goods sold over this period?

\begin{tabular}{|l|c|c|c|}
\hline \multicolumn{4}{|c|}{Additional Inventory Purchased} \\
\hline \multicolumn{1}{|c|}{Item} & Cost & Units & Total \\
\hline Puzzles & [tex]$\$[/tex]15.00[tex]$ & 12 & $[/tex]\[tex]$180.00$[/tex] \\
\hline Shirts & [tex]$\$[/tex]18.00[tex]$ & 15 & $[/tex]\[tex]$270.00$[/tex] \\
\hline Key Chains & [tex]$\$[/tex]5.50[tex]$ & 14 & $[/tex]\[tex]$77.00$[/tex] \\
\hline
\end{tabular}

Cost of Goods Sold [tex]$=\$[/tex][?]$



Answer :

GinnyAnswer
To determine the Cost of Goods Sold (COGS) over the period, we need to follow a series of steps. Here is a detailed, step-by-step solution:

1. Identify the Beginning Inventory Value:
- The beginning inventory value is given as \[tex]$9,200. 2. Calculate the Total Additional Inventory Purchased: - The table provides the costs of additional inventory purchased: - Puzzles: \$[/tex]180.00
- Shirts: \[tex]$270.00 - Key Chains: \$[/tex]77.00
- Add these amounts together to find the total additional inventory purchased:
[tex]\[ \$180.00 + \$270.00 + \$77.00 = \$527.00 \][/tex]

3. Identify the Ending Inventory Value:
- The ending inventory value is given as \[tex]$1,700. 4. Compute the Cost of Goods Sold (COGS): - The formula to calculate COGS is: \[ \text{COGS} = \text{Beginning Inventory} + \text{Additional Inventory Purchased} - \text{Ending Inventory} \] - Plugging in the values we have: \[ \text{COGS} = \$[/tex]9,200 + \[tex]$527 - \$[/tex]1,700
\]

5. Perform the Calculation:
- Add the beginning inventory and the additional inventory purchased:
[tex]\[ \$9,200 + \$527 = \$9,727 \][/tex]
- Subtract the ending inventory from this sum:
[tex]\[ \$9,727 - \$1,700 = \$8,027 \][/tex]

Thus, the Cost of Goods Sold (COGS) over this period is [tex]\(\$8,027\)[/tex].

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