Test Index

WAEC Commerce 2020 Paper

Question : 20

Total: 48

Use the information below to answer questions 20 and 21.

Solution:

Concept:

Cost of goods sold is the cost of goods available for sale that were actually sold during the period.

Explanation:

Step 1: Write the formula.

\text{Cost of goods sold} = \text{Opening stock} + \text{Purchases} - \text{Closing stock}

Step 2: Substitute the given values.

= \text{N}4{,}000 + \text{N}17{,}000 - \text{N}12{,}000

Step 3: Add opening stock and purchases.

= \mathrm{N}21{,}000 - \mathrm{N}12{,}000

Step 4: Subtract closing stock.

=\text{N}9{,}000

Answer:

B. ₦9,000

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