Test Index

WAEC Commerce 2011 Paper

Question : 18

Total: 47

What is the cost of goods sold?

Solution:

Concept:

Cost of goods sold is calculated by adding opening stock to purchases and then subtracting closing stock.

Explanation:

The formula is:

\text{Cost of Goods Sold} = \text{Opening Stock} + \text{Purchases} - \text{Closing Stock}

Substitute the given values:

\text{Cost of Goods Sold} = \$2{,}000 + \$28{,}000 - \$3{,}000

Add the opening stock and purchases:

\$2{,}000 + \$28{,}000 = \$30{,}000

Subtract the closing stock:

\$30{,}000 - \$3{,}000 = \$27{,}000

Thus, the cost of goods sold is

D27{,}000

Answer:

B. D27,000

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