Final answer:
The correct formula for determining the cost of goods sold is option b) Beginning Inventory + Purchases - Ending Inventory.
Step-by-step explanation:
The correct formula for determining the cost of goods sold is option b) Beginning Inventory + Purchases - Ending Inventory.
The cost of goods sold (COGS) represents the direct costs of producing the goods that a company sells. It includes the cost of raw materials, labor, and other expenses directly associated with production.
By subtracting the ending inventory from the sum of beginning inventory and purchases, we obtain the total cost of the goods sold during a specific period.