A company uses a periodic inventory system and has the following information at the end of the accounting period: beginning inventory $40,000, purchases $135,000, and ending inventory $27,500.What was their cost of sales for the period?
A)$122,500
B)$135,000
C)$147,500
D)$202,500

Question

Quizplus · Accepted Answer

Cost of Sales = Beginning Inventory + Purchases - Ending Inventory
Cost of Sales = $40,000 + $135,000 - $27,500 
Cost of Sales = $147,500

A Company Uses a Periodic Inventory System and Has the Following