Use the following information below to answer the question<br/>Ojo bought a bicycle for #20,000, and repaired it at a cost of #5,000. He then sold the bicycle for ₦30,000<br/>What is the cost of goods sold?
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Correct Answer: Option D
Explanation:
The cost of goods sold is the total amount it cost Ojo to acquire the bicycle and get it ready for sale.<br/><br/>This includes the initial purchase price plus any additional expenses incurred to make the item sellable, such as the repair cost.<br/><br/>\(\text{Cost of Goods Sold} = \text{Purchase Price} + \text{Repair Cost}\)<br/>\(\text{Cost of Goods Sold} = 20,000 + 5,000 = ₦25,000\)<br/><br/>Therefore, the cost of goods sold is ₦25,000.
The cost of goods sold is the total amount it cost Ojo to acquire the bicycle and get it ready for sale.<br/><br/>This includes the initial purchase price plus any additional expenses incurred to make the item sellable, such as the repair cost.<br/><br/>\(\text{Cost of Goods Sold} = \text{Purchase Price} + \text{Repair Cost}\)<br/>\(\text{Cost of Goods Sold} = 20,000 + 5,000 = ₦25,000\)<br/><br/>Therefore, the cost of goods sold is ₦25,000.