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 equation used to calculate cost of goods sold is Beginning finished goods + Cost of goods manufactured – Ending finished goods. This equation takes into account the beginning inventory of finished goods, adds the cost of goods manufactured during the period, and subtracts the ending inventory of finished goods to calculate the cost of goods sold. Therefore, choice D is the correct one.

Which of the Following Equations Is Used to Calculate Cost