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.