Eze's business had opening stock of ₦45,000, purchases of ₦180,000, carriage inwards of ₦5,000, and closing stock of ₦30,000. What is the cost of goods sold?

Cost of goods sold = Opening stock + Purchases + Carriage inwards − Closing stock = ₦45,000 + ₦180,000 + ₦5,000 − ₦30,000 = ₦200,000. A common error is to omit carriage inwards, giving ₦195,000, or to add closing stock instead of deducting it.