At the beginning of September 2018, Sunland Company reported Inventory of $8500. During the month, the company made purchases of $36100. At September 30, 2018, a physical count of inventory reported $8700 on hand. Cost of goods sold for the month is

cost of goods sold = $35,900

Explanation:

beginning inventory = $8,500

purchases during the month = $36,100

ending inventory = $8,700

cost of goods sold = beginning inventory + purchases - ending inventory = $8,500 + $36,100 - $8,700 = $35,900

In this case we do not have to worry about FIFO, LIFO, or any type of inventory valuation method since we are given the cost of ending inventory.

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