The formula for the Cost of Goods Sold (COGS) is:

Here's how to find the cost of goods sold for both parts: The formula for the Cost of Goods Sold (COGS) is: $$ \text{COGS} = \text{Opening Stock} + \text{Purchases} - \text{Closing Stock} $$ a) Step 1: Calculate total purchases. $$ \text{Total Purchases} = \text{Cash purchases} + \text{Credit purchases} $$ $$ \text{Total Purchases} = \text{K } 500.00 + \text{K } 820.00 = \text{K } 1320.00 $$ Step 2: Calculate the Cost of Goods Sold. $$ \text{COGS} = \text{Stock at start} + \text{Total Purchases} - \text{Stock at end} $$ $$ \text{COGS} = \text{K } 600.00 + \text{K } 1320.00 - \text{K } 700.00 $$ $$ \text{COGS} = \text{K } 1920.00 - \text{K } 700.00 $$ $$ \text{COGS} = \boxed{\text{K } 1220.00} $$ b) Step 1: Calculate total purchases. $$ \text{Total Purchases} = \text{Cash purchases} + \text{Credit purchases} $$ $$ \text{Total Purchases} = \text{K } 1300.00 + \text{K } 1000.00 = \text{K } 2300.00 $$ The "Refund inward" is a sales return and is not relevant for calculating the Cost of Goods Sold. Step 2: Calculate the Cost of Goods Sold. $$ \text{COGS} = \text{Stock at start} + \text{Total Purchases} - \text{Stock at end} $$ $$ \text{COGS} = \text{K } 900.00 + \text{K } 2300.00 - \text{K } 990.00 $$ $$ \text{COGS} = \text{K } 3200.00 - \text{K } 990.00 $$ $$ \text{COGS} = \boxed{\text{K } 2210.00} $$ That's 2 down. 3 left today — send the next one.