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Sue, of Sue’s Sandwich Shoppe, sells sandwiches and soda from a side walk cart. She sets up her care in the summers to raise money for college. Last month she sold $1,000 worth of product(sandwiches and sodas) to 100 customers. Her unit is one sandwich (COGs $4) plus one soda (COGS$1) How much is her Total COGS=____________________

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Samawati

Answer:

$500

Explanation:

The Costs of goods sold is the expense incurred while producing goods for sale. Costs of goods sold or COGS is the total direct cost production for goods sold in a period.

COGS = Beginning Inventory  + purchases - closing Inventory

In this case,

the COGS for one soda is $4, and the COGS is $1.

the combined COGS is $5 ( $4 + $1)

Sue sells to 100 customers,

the total COGS = $5 x 100

=$500

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