Given;
Purchases = N20,000
Sales = N40,000
Carriage inwards = N5,000
Carriage outwards = N5,000
Opening stock = N10,000
Closing stock = N5,000
What is the cost of goods sold?
A N30,000
B N25,000
C N20,000
D N15,000
Answer is A
Cost of goods sold:
= Opening stock + purchases + carriage inwards – closing stock
= 10000 + 20000 + 5000 – 5000
= 35000 – 5000
= 30000
: Cost of goods sold = 30000
