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

Question

Quizplus · Accepted Answer

The formula for cost of goods sold in a merchandising business is the beginning merchandise inventory plus the purchases and freight in during the period, minus the ending merchandise inventory. Therefore, option D correctly represents the formula for cost of goods sold.

Which of the Following Formulas Represent Cost of Goods Sold