Stear Corp. has an opening inventory of $2,500. During the year, it made purchases worth $55,000. At the end of the accounting period, the inventory was worth $1,250. What was the cost of goods sold?

Question

A. 

$57,500

B. 

$56,250 

C. 

$53,750

D. 

$55,000

Answer 1

Beginning inventory of 2,500 plus purchases of 55,000 minus ending inventory of 1,250 = 56,250 of cost of goods sold.