Taxpayer Info: Star Corp. is a calendar-year, accrual-method C corporation that sells inventory.

During 2018, Star Corp had gross sales of $300,000,000 and returns of $10,000,000. At the beginning of the year, Star Corp. had $20,000,000 worth of inventory. During the year, Star Corp. purchased $105,000,000 worth of inventory. Star Corp. had end of year inventory worth $25,000,000. What is Star Corp.'s cost of goods sold?

Question

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Respuesta :

DeniceSandidge DeniceSandidge · Answer 1 · 2020-02-07T08:23:32+01:00

Answer:

Cost of Goods Sold = $100,000,000

Explanation:

given data

gross sales of $300,000,000

returns = $10,000,000

beginning worth of inventory = $20,000,000

During year worth of inventory = $105,000,000

end year worth of inventory = $25,000,000

solution

we get here Cost of Goods Sold that is express as

Cost of Goods Sold = Cost of Goods purchased + Beginning Finished Goods Inventory - Ending Finished Goods Inventory .......................1

put here value we get

Cost of Goods Sold = $105,000,000 + $20,000,000 - $25,000,000

Cost of Goods Sold = $100,000,000