Cost of goods sold is given by:
A) Beginning inventory − net purchases + ending inventory.
B) Beginning inventory + accounts payable − net purchases.
C) Net purchases + ending inventory − beginning inventory.
D) Net Purchases + beginning inventory − ending inventory.

Question

Quizplus · Accepted Answer

Cost of goods sold is calculated as the cost of inventory sold during a period. It can be calculated as the sum of beginning inventory and the cost of goods purchased during the period, and then subtracting the ending inventory. This can be expressed as net purchases plus beginning inventory minus ending inventory.

Cost of Goods Sold Is Given By