In order to determine cost of goods sold in a periodic inventory system we
A)add purchases to beginning inventory.
B)subtract ending inventory from beginning inventory.
C)subtract ending inventory from cost of goods available for sale.
D)subtract purchases from ending inventory.

Question

Quizplus · Accepted Answer

In a periodic inventory system, the cost of goods sold (COGS) is determined by subtracting the ending inventory from the cost of goods available for sale. The cost of goods available for sale is calculated by adding purchases to the beginning inventory.

In Order to Determine Cost of Goods Sold in a Periodic