To determine the cost of goods sold,to report on the income statement,multiply the number of units of inventory:

Question

Quizplus · Accepted Answer

The cost of goods sold is the cost of the inventory that has been sold during a given period. Therefore, to determine the cost of goods sold, you need to multiply the number of units sold by the cost per unit. Option A is incorrect because it calculates revenue, not the cost of goods sold. Option C is incorrect because it uses the retail price, which has no relevance to the cost of goods sold. Option D is incorrect if you are calculating the cost of goods sold, as this involves the cost of goods that were sold rather than what was purchased.

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