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How is the cost of goods sold calculated?

A. opening inventory+purchase+closing inventory

B. opening inventory+closing inventory-purchase

C. opening inventory+purchase-closing inventory

D. Closing inventory+purchase-closing inventory

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Question ajoutée par Wasim khan wazir , Finance Specialist , Mott Macdonald
Date de publication: 2015/06/29
Maria Cecilia Arsenal
par Maria Cecilia Arsenal , Bookkeeper , Archor Lending Services, Inc.

Opening Inventory + Purchases - Closing Inventory = Cost of Goods Sold

mohammad saqib
par mohammad saqib , Research Analyst , Capital IQ

For calculating the cost of goods sold we need to understand what that term implies for. so that is the total cost of company or entities incurred for  the year in production process, so all the direct expenses is form parts for calculating the cost of goods sold, this is associated with the factory direct cost. So if we remember “Trading account table” we can say that opening stock plus purchases and minus closing stock, gives output of cost of goods sold for that year, so the answer C is the correct one. i hope it  will make a better understanding to all my fellow member.

Saifudheen CMA  ACMA
par Saifudheen CMA ACMA , Senior Project Accountant , NAFFCO

C. opening inventory+purchase-clo... invntry............................................................

Ahmed Allam
par Ahmed Allam , Operation Manager / Partner , Fawzi Abdul Shafi Chartered Accountants Office.

How is the cost of goods sold calculated? C. opening inventory+purchase-closing inventory

Ajay Dutt
par Ajay Dutt , Senior Accountant , Concept Zone Group of Companies

Option C..........................

lakshminarasimham mallareddi
par lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

Correct Answer is C. Opening inventory + purchase - closing inventory will derive cost of goods sold

Ahmed kandil
par Ahmed kandil , Cost Controller , Battour Holding Cpompany

answer C is the correct answer 

thank you 

Furqan Qadeer
par Furqan Qadeer , Accountant , Kiran Publications

 

opening inventory+purchase-closing inventory

C is the right answer

Salim Vora
par Salim Vora , Senior Functional Consultant & Functional Consultant , Mastek Limited

we can find as under

Cost of Good Sold = Opening inventory+Purchase-Closing inventory

Hisham Bawazir
par Hisham Bawazir , Independent Contractor , Individual

c. opening stock + purchases - closing stock

janakiraman nagarajan
par janakiraman nagarajan , Finance Account Manager , best orion general trading llc

the answer is option c. (opening stock+purchases-closing inventory)

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