To determine the Cost of Goods Sold to report on the income statement,we take:

Question

Quizplus · Accepted Answer

Cost of Goods Sold represents the cost of the inventory that was sold during the period. Therefore, we need to calculate the cost per unit of inventory and multiply it by the number of units sold. Option B is correct as it multiplies the number of units sold by the cost per unit. The other options are incorrect as they either use the retail price instead of the cost per unit or consider the total inventory purchased rather than the portion that was sold.

To Determine the Cost of Goods Sold to Report on the Income