Use the following information to answer question, \(\begin{array}{c|c} & ₦\\ \hline \text{Opening stock} & 40,000\\ \text{Purchases} & 130,000\\ \text{Closi...

Use the following information to answer question,
\(\begin{array}{c|c} & ₦\\ \hline \text{Opening stock} & 40,000\\ \text{Purchases} & 130,000\\ \text{Closing stocks} & 32,000 \\ \text{sales} & 180,000\end{array}\)
What was the cost of goods sold?

Answer Details

The cost of goods sold can be calculated by subtracting the closing stock from the sum of the opening stock and purchases. This is because the cost of goods sold is the cost of the goods that were sold during the accounting period. Using the figures given in the question, the calculation is as follows: Cost of Goods Sold = Opening Stock + Purchases - Closing Stock Cost of Goods Sold = ₦40,000 + ₦130,000 - ₦32,000 Cost of Goods Sold = ₦138,000 Therefore, the cost of goods sold is ₦138,000. , ₦138,000, is the correct answer.