Given \(\begin{array}{c|c} \text{Opening stock} & 50,000 \\ \hline \text{Purchases} & 200,000 \\ \hline \text{Sales} &...

JAMB 2015

Given

\(\begin{array}{c|c}
\text{Opening stock} & 50,000 \\
\hline
\text{Purchases} & 200,000 \\
\hline
\text{Sales} & 350,000 \\
\hline
\text{Closing stock} & 80,000 \\
\end{array}\)

What is the cost of good sold?

A. N200,000
B. N190,000
C. N170,000
D. N175,000

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Correct Answer: Option C

Explanation

The cost of goods sold is calculated through the formula below

opening stock + purchases – closing stock.
If we go by the formula above it is
N50,000 + N 200,000 - N80,000 = N170,000.

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