Calculation of cost of goods sold for the year 2017:
Cost of goods sold = opening stock + Purchased + Direct expenses – closing stock
= 30,000 + 1,50,000 + (10,000 + 10,000) – 40,000
= 30,000 + 1,50,000 + 20,000 – 40,000
= 2,00,000 – 40,000
Cost of goods sold = Rs. 1,60,000
Note: Direct expenses includes both wages as well as carriage inwards.
