Question

Multiple Choice

The basic calculation for Cost of Goods Sold for a retail business is:
O Beginning Inventory - Inventory Purchases - End Inventory = Cost of Goods Sold
O Beginning Inventory - Inventory Purchases + End Inventory = Cost of Goods Sold
O Beginning Inventory + Inventory Purchases + End Inventory = Cost of Goods Sold
O Beginning Inventory + Inventory Purchases - End Inventory = Cost of Goods Sold

Answer 1

opening stock + purchases – closing stock

Step-by-step explanation:

Cost of Sales

The cost of sales can be calculated by using the following equation:

cost of sales = opening stock + purchases – closing stock

This can be useful when determining the gross profit of a business.