Given
(begin{array}{c|c}
text{Opening stock} & 50,000 \
hline
text{Purchases} & 200,000 \
hline
text{Sales} & 350,000 \
hline
text{Closing stock} & 80,000 \
end{array})
What is the cost of good sold?
-
A.
N200,000 -
B.
N190,000 -
C.
N170,000 -
D.
N175,000
Correct Answer: Option C
Explanation
The cost of goods sold is calculated through the formula below
opening stock + purchases – closing stock.
If we go by the formula above it is
N50,000 + N 200,000 – N80,000 = N170,000.