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If the opening inventory is valued at $10,000, purchases during the year are $60,000, wages amount to $5,000, and carriage inwards is $3,000, what is the cost of goods sold if the closing inventory is valued at $20,000?
  • a)
    $58,000
  • b)
    $48,000
  • c)
    $68,000
  • d)
    $78,000
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
If the opening inventory is valued at $10,000, purchases during the ye...
The cost of goods sold (COGS) is calculated as:
COGS = Opening Inventory + Purchases + Wages + Carriage Inwards - Closing Inventory
COGS = $10,000 + $60,000 + $5,000 + $3,000 - $20,000 = $58,000
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If the opening inventory is valued at $10,000, purchases during the year are $60,000, wages amount to $5,000, and carriage inwards is $3,000, what is the cost of goods sold if the closing inventory is valued at $20,000?a)$58,000b)$48,000c)$68,000d)$78,000Correct answer is option 'A'. Can you explain this answer?
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