Which of the following formulas determine cost of goods sold in a merchandising entity?
A) Beginning inventory + Purchases + Ending inventory = Cost of goods sold
B) Beginning inventory + Purchases - Ending inventory = Costs of goods sold
C) Beginning inventory - Purchases + Ending inventory = Cost of goods sold
D) Beginning inventory - Ending inventory - Purchases = Cost of goods sold

Question

Quizplus · Accepted Answer

The formula for determining cost of goods sold in a merchandising entity is Beginning inventory + purchases - ending inventory = cost of goods sold. This is because the cost of goods sold represents the cost of the products that were sold during the accounting period, and this can be calculated by subtracting the ending inventory from the sum of the beginning inventory and purchases.

Which of the Following Formulas Determine Cost of Goods Sold