Kolawole’s Opening Stock was N10, 000. His purchases was N280,000 Goods returned outward was N3,000, and the Closing Stock was N8,000 Cost of goods sold is ____________
A. N180,000.00 B. N227,000.00 C. N279,000.00 D. N290,000.00 E. N301,000.00
Correct Answer: C
Explanation
Cost of goods sold = opening stock + purchases - closing stock - returns outwards (returns outwards represent goods that were bought but returned to the supplier due to one reason or the other. It will be subtracted from the purchase) 10,000 + 280,000 - (8,000 - 3,000) 290,000 - 11,000 = 279,000
