The cost of goods sold is?

Use the following information to answer the question below

Trading Account of Umeh Enterprises for the year ended 31st December 2019

	GH⊄		GH⊄
Opening stock	10000	Sales	200000
Purchases	120000	Less:	(4000)
	130000		196000
Closing stock	(22800)
Cost of goods sold	—–
Gross profit	——
	196000		196000

 

A. GH⊄ 152,800
B. GH⊄ 107,200
C. GH⊄ 43,200
D. GH⊄ 88,800

Correct Answer:

Option B – GH⊄ 107,200

Explanation

Cost of goods sold = Opening stock + Purchases – Closing stock
= 10,000 + 120,000 – 22,800
= 107,200