A trader's turnover was D36,000. Purchases was D28,000. The opening stock was D2,000 and the closing stock was D3,000. What is the cost of goods sold?
Question 1 Report
A trader's turnover was D36,000. Purchases was D28,000. The opening stock was D2,000 and the closing stock was D3,000.
What is the cost of goods sold?
Answer Details
The cost of goods sold is the cost of the merchandise that a retailer sells to its customers during a particular period. To calculate the cost of goods sold, we use the following formula:
Cost of Goods Sold = Opening Stock + Purchases - Closing Stock
Using the figures given in the question:
Opening Stock = D2,000
Purchases = D28,000
Closing Stock = D3,000
Therefore, the cost of goods sold is:
Cost of Goods Sold = D2,000 + D28,000 - D3,000
Cost of Goods Sold = D27,000
Hence, the cost of goods sold is D27,000.
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