Cost of goods sold equals:

Name: Cost of goods sold equals:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The cost of goods sold is the cost of the inventory that was sold during the period. It is calculated by taking the beginning inventory, adding the net purchases (total purchases minus purchase returns and allowances and purchase discounts) and then subtracting the ending inventory. Therefore, the correct formula is beginning inventory + net purchases - ending inventory, which corresponds to choice D.

Cost of Goods Sold Equals