Which of the following formulas represents cost of goods sold for a merchandising business?
A)Beginning Inventory - Ending Inventory = Cost of Goods Sold
B)Purchases and Freight In - Ending Inventory = Cost of Goods Sold
C)Ending Inventory + Purchases and Freight In - Beginning Inventory = Cost of Goods Sold
D)Beginning Inventory + Purchases and Freight In - Ending Inventory = Cost of Goods Sold

Question

Quizplus · Accepted Answer

The cost of goods sold (COGS) is calculated by adding the beginning inventory to purchases and freight in, and then subtracting the ending inventory. This reflects the cost of inventory sold during the period.

Which of the Following Formulas Represents Cost of Goods Sold