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?

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.