What is the cost of sales for the period, given opening inventory 3,890; purchases 74,381; closing inventory 2,996?

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Multiple Choice

What is the cost of sales for the period, given opening inventory 3,890; purchases 74,381; closing inventory 2,996?

Explanation:
The calculation hinges on the cost of sales = opening inventory + purchases − closing inventory. Add the opening stock of 3,890 to the purchases of 74,381 to get 78,271. Then subtract the closing stock of 2,996 to arrive at 75,275. This 75,275 is the cost of sales for the period, representing the cost of the inventory that was sold during the period. If the listed answer shows 76,000, that would require different data or adjustments not present in the given figures.

The calculation hinges on the cost of sales = opening inventory + purchases − closing inventory. Add the opening stock of 3,890 to the purchases of 74,381 to get 78,271. Then subtract the closing stock of 2,996 to arrive at 75,275. This 75,275 is the cost of sales for the period, representing the cost of the inventory that was sold during the period. If the listed answer shows 76,000, that would require different data or adjustments not present in the given figures.

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