Ojo bought a bicycle for #20,000, and repaired it at a cost of #5,000. He then sold the bicycle for #30,000.

What is the cost of goods sold

A.

#30,000

B.

#25,000

C.

#20,000

D.

#15,000

Correct answer is B

COGS = Beginning Inventory + Purchases During the Period – Ending Inventory.

Examples of what can be listed as COGS include the cost of materials, labor, the wholesale price of goods that are resold, such as in grocery stores, overhead, and storage.

20,000 + 5,000 = 25000