Question

Prepare cost of goods sold
Opening stock 25000
Credit purchase 750000
Cash purchase 300000
Wages 100000
Closing stock 80000
Purchase return 50000

Answer 1

Cost of goods sold (COGS) => Opening stock + Net purchases(less Purchase return) + Direct expenses - Closing stock

Here it will be :-

COGS => 25000 + 1050000 (Credit purchase + Cash purchase) - 50000 (Purchase return) + 100000 - 80000

So by that your answer will be :- 1045000