Which of the following equations is used to calculate the co

Which of the following equations is used to calculate the cost of goods sold during the period?

A. Beginning finished goods + cost of good manufactured + ending finished good

B. Beginning finished goods - ending finished good

C. Beginning finished goods + cost of good manufactured

D. Beginning finished goods + cost of good manufactured - ending finished good

E. Beginning finished goods + ending finished good - cost of good manufactured

Solution

The correct option is D.

Beginning finished goods added to cost of goods manufactured during a period and the total is subtracted to the ending finished goods to calculate the cost of goods sold for the period.