Cost of goods sold is computed from the following equation:
A) beginning inventory - cost of goods purchased + ending inventory.
B) sales - cost of goods purchased + beginning inventory - ending inventory.
C) sales + gross profit - ending inventory + beginning inventory.
D) beginning inventory + cost of goods purchased - ending inventory.

Question

Quizplus · Accepted Answer

Cost of goods sold is determined by subtracting the ending inventory from the sum of beginning inventory and cost of goods purchased. This can be represented as: beginning inventory + cost of goods purchased - ending inventory = cost of goods sold.

Cost of Goods Sold Is Computed from the Following Equation