Cost of goods sold (COGS) denotes the carrying value of goods and raw materials sold to customers during specific period.
Beginning inventory of a company was $16000 and the company purchased new inventory for the cost of $5000. Ending inventory of the company was $10000.Calculate the cost of goods sold in a year.
Beginning inventory = $16000 Purchases = $5000 Ending inventory = $10000
Cost of goods sold
COGS = Beginning inventory + Purchases - Ending inventory = 16000 + 5000 - 10000 = 21000 - 10000 = $11000