To determine the Cost of Goods Sold (COGS) over the period, we need to follow a series of steps. Here is a detailed, step-by-step solution:
1. Identify the Beginning Inventory Value:
- The beginning inventory value is given as \[tex]$9,200.
2. Calculate the Total Additional Inventory Purchased:
- The table provides the costs of additional inventory purchased:
- Puzzles: \$[/tex]180.00
- Shirts: \[tex]$270.00
- Key Chains: \$[/tex]77.00
- Add these amounts together to find the total additional inventory purchased:
[tex]\[
\$180.00 + \$270.00 + \$77.00 = \$527.00
\][/tex]
3. Identify the Ending Inventory Value:
- The ending inventory value is given as \[tex]$1,700.
4. Compute the Cost of Goods Sold (COGS):
- The formula to calculate COGS is:
\[
\text{COGS} = \text{Beginning Inventory} + \text{Additional Inventory Purchased} - \text{Ending Inventory}
\]
- Plugging in the values we have:
\[
\text{COGS} = \$[/tex]9,200 + \[tex]$527 - \$[/tex]1,700
\]
5. Perform the Calculation:
- Add the beginning inventory and the additional inventory purchased:
[tex]\[
\$9,200 + \$527 = \$9,727
\][/tex]
- Subtract the ending inventory from this sum:
[tex]\[
\$9,727 - \$1,700 = \$8,027
\][/tex]
Thus, the Cost of Goods Sold (COGS) over this period is [tex]\(\$8,027\)[/tex].
