Cherokee Incorporated is a merchandiser that provided the following information: Beginning Inventory = \$10,000; Purchases = \$50,000; Ending Inventory = \$8,000. What is the Cost of Goods Sold (COGS) for the period?

• A. \$52,000
• B. \$58,000
• C. \$60,000
• D. \$48,000

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the formula for Cost of Goods Sold (COGS). The formula is: \( \text{COGS} = \text{Beginning Inventory} + \text{Purchases} - \text{Ending Inventory} \). This formula calculates the cost of goods that were sold during the period.
2. Step 2: Identify the values provided in the problem. Beginning Inventory is \( \$10,000 \), Purchases are \( \$50,000 \), and Ending Inventory is \( \$8,000 \).
3. Step 3: Substitute the values into the formula. Using MathML, the equation becomes: \( \text{COGS} = 10,000 + 50,000 - 8,000 \).
4. Step 4: Perform the addition first: \( 10,000 + 50,000 \). Then subtract the Ending Inventory \( 8,000 \) from the result.
5. Step 5: The final value obtained after performing the calculations will be the Cost of Goods Sold (COGS) for the period.