Which of the following is the equation for cost of goods sold?
A) Beginning inventory + net purchases - Ending inventory
B) Beginning inventory + net purchases + Ending inventory
C) Net purchases - Beginning inventory
D) Ending inventory + net purchases - Beginning inventory

Question

Quizplus · Accepted Answer

Cost of goods sold is calculated by subtracting the ending inventory from the sum of beginning inventory and net purchases. Therefore, option A (Beginning inventory + net purchases - Ending inventory) is the correct equation for calculating the cost of goods sold.

Which of the Following Is the Equation for Cost of Goods