Answer:
Cost of Goods Sold for October is $8,600
Explanation:
Goods available to sale is the sum to Beginning Inventory and the production / Purchases for the period.
Goods Available for sale = Beginning Inventory + Purchases = $3,600 = $7,600 = $11,200
Cost of Goods sold is the cost of the unit sold which is incurred to produce / purchase that products. It is calculated by deducting the ending inventory from goods available to sale.
Cost of Goods Sold = Goods available for sale - Ending Inventory = $11,200 - $2,600 = $8,600
Answer:
$8,600
Explanation:
The movement in the balance of inventory at the start and end of a period is as a result of sales and purchases. While sales reduces the balance in inventory, purchases increases the balance.
This may be expressed mathematically as
Opening balance + purchases - cost of goods sold = closing balance
$3,600 + $7,600 - cost of goods sold = $2,600
cost of goods sold = $3,600 + $7,600 - $2,600
= $8,600
