Given;
Purchases = N20,000
Sales = N40,000
Carriage inwards = N5,000
Carriage outwards = N5,000
Opening stock = N10,000
Closing stock = N5,000
What is the cost of goods sold?
-
N30,000
- N25,000
- N20,000
- N15,000
The correct answer is: A
Explanation
Cost of goods sold:= Opening stock + purchases + carriage inwards - closing stock
= 10000 + 20000 + 5000 - 5000
= 35000 - 5000
= 30000
: Cost of goods sold = 30000
Thank you
Thanks to Gloria Adah for providing the explanation