Question

2- Below are the following data: First-term merchandise: 23500 units at a price of 1,000 dinars per unit, purchases for the period 64,700 units at a price of 1200 dinars per unit, sales 42,000 units at a price of 2000 dinars per unit and at the actual inventory at the end of the year it was found that the stock balance is 46,200 units and was valued at 1,000 Dinars per unit, knowing that the company adopts the cost or market, whichever is lower in evaluating the stock of the last cost of the sold goods is: * O

A- 54940000 dinars O

B- 54490000 dinars O

C- 45940000 dinars O

d- none of the above

Answer 1

Answer is A 54940000 Dinars O

Cost of Goods Sold is calculated by Opening Stock in Value+Purchases in value- Closing stock in Value

In this case Opening Stock in Value= 23500 Units*1000 Dinars per unit= 23500000

ADD Purchases in Value =64700 Units *1200 Dinars per unit = 77640000

LESS Closing Stock in Value =46200 Units *1000 Dinars per unit = 46200000

Cost of Goods sold is thus =54940000

All other options doesnot fit within this formula for finding cost of goods sold