Use the information below to answer questions 20 and 21.
| Opening stock | 4000 |
| Closing stock | 12000 |
| Purchases | 17000 |
The cost of goods sold is
- N4,000
-
N9,000
- N16,000
- N21,000
The correct answer is: B
Explanation
COGS = Opening Stock + Purchases − Closing Stock
Substituting the values provided Opening Stock = 4000, Purchases = 17000, Closing Stock = 12000
COGS = 4000 + 17000 − 12000 = 9000
Therefore, the Cost of Goods Sold (COGS) is 9000