Which of the following equations is used to calculate cost of goods sold during the period?
A) Beginning finished goods + cost of goods manufactured + ending finished goods.
B) Beginning finished goods - ending finished goods.
C) Beginning finished goods + cost of goods manufactured.
D) Beginning finished goods + cost of goods manufactured - ending finished goods.
E) Beginning finished goods + ending finished goods - cost of goods manufactured.

Question

Quizplus · Accepted Answer

The correct formula for calculating the cost of goods sold (COGS) during a period is: Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory. This formula accounts for the total goods available for sale during the period and subtracts the goods remaining at the end to find the cost of goods actually sold.

Which of the Following Equations Is Used to Calculate Cost