Given; Purchases = N20,000 Sales = N40,000 Carriage inwards = N5,000 Carriage outwards = N5,000...

JAMB 1994

Given;
Purchases = N20,000
Sales = N40,000
Carriage inwards = N5,000
Carriage outwards = N5,000
Opening stock = N10,000
Closing stock = N5,000

What is the cost of goods sold?

A. N30,000
B. N25,000
C. N20,000
D. N15,000

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Correct Answer: Option A

Explanation

Cost of goods sold:
= Opening stock + purchases + carriage inwards - closing stock
= 10000 + 20000 + 5000 - 5000
= 35000 - 5000
= 30000
: Cost of goods sold = 30000

Thank you

Thanks to Gloria Adah for providing the explanationOur Facebook Page

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