Which of the Following Formulas Represents Cost of Goods Sold

Multiple Choice

Which of the following formulas represents cost of goods sold for a merchandising business?

A) Beginning inventory - ending inventory = cost of goods sold
B) Purchases and freight in - ending inventory = cost of goods sold
C) Ending inventory + purchases and freight in - beginning inventory = cost of goods sold
D) Beginning inventory + purchases and freight in - ending inventory = cost of goods sold