Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 10 - No. 41)

What is the formula for calculating cost of goods sold (COGS)?
a) Beginning Inventory + Purchases - Ending Inventory.
b) Beginning Inventory - Purchases + Ending Inventory.
c) Ending Inventory + Purchases - Beginning Inventory.
d) Purchases + Ending Inventory - Beginning Inventory.

Explanation

Beginning Inventory + Purchases - Ending Inventory.

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