Question

If the opening stock is Rs. 20000, purchase Rs. 50000, wages
Rs. 10000, freight on purchase Rs. 2000, office rent Rs. 3000
and clossing stock Rs. 12000, Calculate cost of goods sold

Answer 1

Answer:

COGS = 60,000

Explanation:

Cost of goods sold (COGS) = Opening stock + Purchase + Direct expense - Closing stock

Opening stock = 20,000

Purchase = 50,000

Freight on purchase = 2,000

Closing stock = 12,000

COGS = 20,000 + 50,000 + 2,000 - 12,000 = 60,000