CAF-1 · Chapter 12 · Question 13 of 15
An entity has opening inventory of Rs. 100,000, purchases of Rs. 500,000, and closing inventory of Rs. 80,000. What is the Cost of Goods Sold (COGS) for the period?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Rs. 520,000
Explanation
COGS is calculated using the standard trading account formula: Opening Inventory (100,000) + Purchases (500,000) - Closing Inventory (80,000) = Rs. 520,000.
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