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5. What is cost of goods sold?

Answer Posted / smita

op.stock of raw material
+purchases
-purchase returns
+carriage inward
-closing stock of raw material
+direct wages
+direct expenses
+factory overheads
+op stock of work in progress
-closing stock of work in progress
+administration overheads
+op stock of finished goods
-clo stock of finished goods
=cost of goods sold

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