Cost of sales is calculated by:
A)adding the cost of inventory on hand at the start of the period minus the cost of any purchases of materials during the year and then subtract the cost of ending inventory.
B)adding the cost of the inventory at the start of the period plus the cost of any purchases of materials during the year and then subtract the cost of the ending inventory.
C)adding the cost of the inventory on hand at the start of the period plus the cost of any purchases of materials during the year and then add the cost of the ending inventory.
D)adding the cost of the inventory on hand at the end of the period plus the cost of any purchases of materials during the year and then subtract the costs of the beginning inventory.

Question

Quizplus · Accepted Answer

Cost of sales is calculated by adding the cost of the inventory at the start of the period to the cost of any purchases made during the year, and then subtracting the cost of the ending inventory. This formula helps businesses understand how much was spent to sell goods during a period.

Cost of Sales Is Calculated By