Use the following information to answer the given question \(\begin{array}{c|c} & ₦ \\ \hline \text{Opening stock} & 1,800\\ \text{Closing stock} & 1,350 \\...

Answer Details

To calculate the cost of sales, we need to use the formula: Cost of sales = Opening stock + Purchases - Closing stock Here, we are not given the total purchases, but we can calculate it using the information given about creditors and cash paid to creditors: Purchases = Creditors at the end + Cash paid to creditors - Creditors at the beginning Purchases = ₦1,140 + ₦6,900 - ₦1,274 = ₦6,766 Now, we can calculate the cost of sales: Cost of sales = Opening stock + Purchases - Closing stock Cost of sales = ₦1,800 + ₦6,766 - ₦1,350 = ₦7,216 Therefore, the cost of sales for the year was ₦7,216. The closest option to this answer is option C, which is ₦7,215.