Adama's opening stock is D5,000. He purchased goods worth D30,000. His closing stock was D7,000 and sales D55,000 What is the cost of goods sold

Adama's opening stock is D5,000. He purchased goods worth D30,000. His closing stock was D7,000 and sales D55,000

What is the cost of goods sold

Answer Details

The cost of goods sold is the cost of the goods that were sold during the period. It is calculated by subtracting the value of the closing stock from the total cost of goods available for sale. In this case, Adama's opening stock was D5,000 and he purchased goods worth D30,000, giving him a total cost of goods available for sale of D35,000 (D5,000 + D30,000). His closing stock was valued at D7,000. Therefore, the cost of goods sold is: Cost of goods sold = Total cost of goods available for sale - Value of closing stock Cost of goods sold = D35,000 - D7,000 Cost of goods sold = D28,000 Therefore, the cost of goods sold is D28,000.