To calculate the cost of goods sold during the period, you would use which of the following equations?
A) Beginning finished goods + cost of goods manufactured + ending finished goods
B) Ending finished goods + cost of goods manufactured - beginning finished goods
C) Beginning finished goods + cost of goods manufactured - ending finished goods
D) Beginning finished goods + ending finished goods - cost of goods manufactured

Question

Quizplus · Accepted Answer

The correct formula to calculate the cost of goods sold (COGS) is: Beginning Inventory + Purchases during the period - Ending Inventory. In the context of manufacturing, this translates to Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods. This formula accounts for the total goods available for sale during the period and subtracts the goods remaining at the end to find the cost of goods actually sold.

To Calculate the Cost of Goods Sold During the Period