Final answer:
To determine the cost of goods sold for the September 30 sale, you need to calculate the cost of the goods that were sold during that period. The COGS formula is: COGS = Opening Inventory + Purchases - Closing Inventory.
Step-by-step explanation:
The cost of goods sold (COGS) is the total cost incurred to produce the goods that were sold during a specific period. It includes the cost of the raw materials, direct labor, and any other costs directly related to producing the goods. To determine the COGS for the September 30 sale, you need to calculate the cost of the goods that were sold during that period.
The formula to calculate the COGS is:
COGS = Opening Inventory + Purchases - Closing Inventory
1. Determine the value of the opening inventory, which is the worth of the goods available for sale at the beginning of the period.
2. Calculate the purchases made during the period, which includes the cost of acquiring additional inventory.
3. Determine the value of the closing inventory, which is the worth of the goods left unsold at the end of the period.
4. Subtract the value of the closing inventory from the sum of the opening inventory and purchases to find the COGS for the September 30 sale.