Question

6. During year 1, the sales and Cost of goods sold were Ghs.1,200,000 and

Ghs. 860,000 respectively. Next year, the sales are expected to increase by
10%. The Cost of goods sold for next year would be:
a. Ghs 860,000,
b. Ghs. 980,000,
c. Ghs 946,000
d. Ghs 880,000

Answer 1

946,000

Step-by-step explanation:

sales increment reflect to the COGS with the same percent, so it will be 10%

expected COGS = Last year ( 980,000 ) + 10% ( 86,000 ) = 946,000