Cost of goods sold is calculated 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 (COGS) is calculated as the beginning inventory plus the cost of goods purchased during the period minus the ending inventory. This formula reflects the total cost of the merchandise sold during the period.

Cost of Goods Sold Is Calculated from the Following Equation