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carma99
May 31, 2015, 04:11 PM
if:
Inventory 1st January = $19,400
Inventory 31st December = $26,660
Sales for the year = $155,880

who do you calculate the cost of goods sold?

jerileycpa
Jun 1, 2015, 03:37 PM
Cost of goods sold is calculated as follows:

Beginning inventory + purchases - ending inventory = COGS

Your sales for the year is not a factor.