Which of the following equations is used to calculate the cost of goods sold during the period?
A)Beginning finished goods + cost of goods manufactured + ending finished goods.
B)Beginning finished goods - ending finished goods.
C)Beginning finished goods + cost of goods manufactured.
D)Beginning finished goods + cost of goods manufactured - ending finished goods.
E)Beginning finished goods + ending finished goods - cost of goods manufactured.

Question

Quizplus · Accepted Answer

The formula for calculating cost of goods sold during the period is beginning finished goods plus cost of goods manufactured minus ending finished goods, which is represented in option D. Option A is incorrect because it includes the beginning and ending finished goods, but not the cost of goods manufactured. Option B is incorrect because it only subtracts the ending finished goods from the beginning finished goods and does not include the cost of goods manufactured. Option C is incorrect because it only adds the beginning finished goods and cost of goods manufactured and does not subtract the ending finished goods. Option E is incorrect because it subtracts the cost of goods manufactured from the beginning and ending finished goods, which is not the correct formula for calculating cost of goods sold.

Which of the Following Equations Is Used to Calculate the Cost