Which of the following is the equation for cost of goods sold?
A)Beginning inventory + net purchases - Ending inventory
B)Beginning inventory + net purchases + Ending inventory
C)Net purchases - Ending inventory
D)Ending inventory + net purchases - Beginning inventory

Question

Quizplus · Accepted Answer

The equation for cost of goods sold is calculated by taking the beginning inventory, adding the net purchases, and then subtracting the ending inventory. This formula is represented by choice A - Beginning inventory + net purchases - Ending inventory.

Which of the Following Is the Equation for Cost of Goods