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Commerce · Q1290

Costing

Graduate and Post Graduate · Commerce · question 1290

Q1290

Cost of goods sold is calculated:

A.
Cost of production + opening stock of finished goods - closing stock of finished goods
Answer
B.
Prime cost + factory overhead cost + work in progress at the beginning - works in progress closing
C.
Opening stock of raw materials + purchase of raw materials - closing stock of raw materials
D.
Cost of production + administrative expenses + work in progress closing - work in progress beginning
E.
Opening stock of work in progress + opening stock of finished goods + works expenses - closing stock of finished goods

Answer: Option A

Solution

Answer: Option A
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