Which of the following inventory equations produces the Cost of Goods Sold?
A)Cost of beginning inventory + cost of goods purchased during period - cost of ending inventory.
B)Cost of ending inventory + cost of goods purchased during period - cost of beginning inventory.
C)Cost of beginning inventory - cost of goods purchased during the period.
D)Cost of ending inventory - cost of goods purchased during the period.
E)Cost of ending inventory + cost of goods purchased during the period.

Question

Quizplus · Accepted Answer

The equation for the Cost of Goods Sold is Cost of beginning inventory + cost of goods purchased during period - cost of ending inventory. This equation takes into account the cost of inventory available for sale during the period and calculates the cost of the portion of inventory sold.

Which of the Following Inventory Equations Produces the Cost of Goods