Consider the information below regarding the cost of goods sold for Company N. Calculate the amount of purchases.
|Purchase returns and allowances||391|
|Cost of goods purchased||10,851|
|Cost of goods sold||10,245|
Cost of Goods Sold
A company makes purchases and sales in a year for its business. Not all the purchased items are sold in the same year itself. Some will be lying as inventory. The cost of goods sold is the currency value of the cost of all the items that the company sells in a period.
Answer and Explanation: 1
Cost of Goods Sold (COGS) = Opening Inventory + Purchases - Purchase returns and allowances - Closing Inventory
Purchases = Cost of Goods Sold (COGS)...
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fromChapter 2 / Lesson 10
Learn the definition of the cost of goods sold and the formula used to calculate it. Also, learn how the cost of goods sold is calculated using examples.