Calculation of the cost of goods sold (cogs) for the month;
It is given that Cafe x bought 20,000 cups for $1,400 when they opened for business last month. At the end of the month, they had 8,000 cups left. It means the Cups sold are (20,000-8000) = 12,000 cups
And the Cost of 12,000 cups sold shall be $1400*12000/20000 = $840
Hence the cost of goods sold (cogs) for the month is $840.
