Question

What is the cost of goods sold with the following information?
Opening stock = $Rs.5,000$
Closing stock = $Rs.2,500$
Purchases = $Rs.47,000$

• A. $Rs.44,500$
• B. $Rs.54,500$
• C. $Rs.39,500$
• D. $Rs.49,500$

Answer 1

The correct option is D $Rs.49,500$

This can be identified with the below equation:

Opening Stock + Purchases - Closing Stock = Cost of Goods Sold

By putting the available information:

Rs.5000 + Rs.47000 - Rs.2500 = Cost of Goods Sold

Cost of goods sold = Rs.52000 - Rs.2500

Cost of goods sold = Rs.49500