A company started the year with $10,000 of inventory. Purchases for resale during the year were $20,000

A company started the year with $10,000 of inventory. Purchases for resale during the year were $20,000. Inventory on December 31 is $5,000. What’s the cost of goods sold? Show Calculation

A. $5,000

B. $10,000

C. $25,000

D. $30,000

E. $35,000

Answer:- C. $25,000

Correct option is C. $25000

Calculation:

Beginning inventory: $10,000

Purchases during the year: $20,000

Ending inventory: $5,000

Cost of goods sold=Beginning inventory + Purchases –Ending inventory

= $10,000 + $20,000 – $5,000

= $25,000

So, the cost of goods sold is $25 000.