Use the information below to answer the question: Trading account for the year ended 31st December 2009 ₦ ₦ Opening Stock 32,000 Sales 48,000 Purchases 40,0...
Trading account for the year ended 31st December 2009
₦
₦
Opening Stock 32,000
Sales 48,000
Purchases 40,000
Less Return 2,000
Carriage inwards 1,000
41,000
Less Return 2,000 39,000
Cost of goods available ??
Less closing stock 9,000
Cost of goods sold ??
Calculate the cost of goods sold
Answer Details
To calculate the cost of goods sold, we need to find the cost of goods available and then subtract the closing stock.
The cost of goods available is found by adding the opening stock to the cost of purchases:
32,000 + 39,000 = 71,000
The cost of goods sold is found by subtracting the closing stock from the cost of goods available:
71,000 - 9,000 = 62,000
So, the cost of goods sold is ₦62,000.