In a merchandising firm,the computation of Cost of Goods Sold does NOT use ________.
A) Merchandise Inventory, beginning balance
B) Merchandise Inventory, ending balance
C) purchases of raw materials
D) purchases of merchandise inventory

Question

Quizplus · Accepted Answer

Cost of Goods Sold for a merchandising firm is calculated using the beginning inventory balance, purchases of merchandise inventory, and the ending inventory balance. Raw materials purchases are not relevant to the calculation of Cost of Goods Sold in a merchandising firm.

In a Merchandising Firm,the Computation of Cost of Goods Sold