WAEC Accounting 2018 Paper

Concept:The cost of goods sold measures the direct cost of inventory sold during a period.Explanation:Cost of goods sold is calculated by taking the opening stock, adding any purchases made during the period, and then subtracting the closing stock.This gives the value of goods actually sold.The correct formula is: $$\text{Cost of Goods Sold} = \text{Opening Stock} + \text{Purchases} - \text{Closing Stock}$$Look at the options: only option A follows this formula.Options B and D wrongly include sales, while option C adds closing stock instead of subtracting it.Answer:A. opening stock + purchase − closing stock