At the beginning of the year, Bryers Incorporated reports inventory of $7,300. During the year, the company purchases additional inventory for $22,300. At the end of the year, the cost of inventory remaining is $9,300. Calculate cost of goods sold for the year.

$20,300

Explanation:

beginning inventory $7,300

purchases during the year $22,300

ending inventory $9,300

cost of goods sold = beginning inventory + purchases - ending inventory = $7,300 + $22,300 - $9,300 = $20,300

When you use a periodic inventory system, you calculate COGS using the previous formula, but if you use a perpetual inventory system, COGS are calculated for every individual sale.