Inventory, Dec. 31 45,000
Inventory, Jan. 1 52,000
cash, Dec. 31 10,000
purchases during the yr 255,000
sales during the year 480,000
Compute CGS
CGS = Beg. Inv. + purchases - ending inv.
CGS = 52,000 + 255,000 - 45,000
CGS = 262,000
Did I compute CGS correctly?
