Given;

Purchases = N20,000

Sales = N40,000

Carriage inwards = N5,000

Carriage outwards = N5,000

Opening stock = N10,000

Closing stock = N5,000

What is the cost of goods sold?

  • A N30,000
  • B N25,000
  • C N20,000
  • D N15,000
jamb 1994accounting

The correct answer is A. N30,000

Cost of goods sold:

= Opening stock + purchases + carriage inwards - closing stock

= 10000 + 20000 + 5000 - 5000

= 35000 - 5000

= 30000

: Cost of goods sold = 30000

Thank you

Thanks to Gloria Adah for providing the explanationOur Facebook Page

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