Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 23 - No. 49)
The formula for calculating the Cost of Goods Sold is:
Beginning Inventory + Purchases - Ending Inventory
Cost of Goods Manufactured - Ending Finished Goods Inventory
Beginning Inventory + Cost of Goods Manufactured - Ending Inventory
All of the above
Explanation
Cost of Goods Sold is calculated by adding the Beginning Inventory with the cost of purchases. Afterwards, this is subtracted by the value of Ending Inventory. Additionally, it can be calculated by subtracting the Ending Inventory from the Cost of Goods Manufactured.
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