Given: Opening stock: ₦40 000 Purchases: ₦115 000 Closing stock: ₦60 000 Sales: ₦250 000 What is the cost of goods sold?

Answer Details

The cost of goods sold is the total cost of the goods that were sold during a specific accounting period. It can be calculated by subtracting the closing stock from the sum of the opening stock and purchases. In this case, - Opening stock: ₦40,000 - Purchases: ₦115,000 - Total cost of goods available for sale: ₦155,000 (₦40,000 + ₦115,000) - Closing stock: ₦60,000 - Cost of goods sold: ₦95,000 (₦155,000 - ₦60,000) Therefore, the cost of goods sold is ₦95,000.