Sampson Company's accounting records show the following for the year ending on December 31, 2014. $$\begin{array} { l r }
\text { Purchase Discounts } & \$ , 600 \
\text { Freight-In } & 7,800 \
\text { Purchases } & 350,010 \
\text { Beginning Inventory } & 23,500 \
\text { Ending Inventory } & 28,800 \
\text { Purchase Returns and Allowances } & 6,400
\end{array}$$ Using the periodic system, the cost of goods purchased is
A) $330,210.
B) $354,210.
C) $358,610.
D) $345,810.

Question

Sampson Company's accounting records show the following for the year ending on December 31, 2014. $$\begin{array} { l r } 
\text { Purchase Discounts } & \$ , 600 \
\text { Freight-In } & 7,800 \
\text { Purchases } & 350,010 \
\text { Beginning Inventory } & 23,500 \
\text { Ending Inventory } & 28,800 \
\text { Purchase Returns and Allowances } & 6,400
\end{array}$$ Using the periodic system, the cost of goods purchased is
A) $330,210.
B) $354,210.
C) $358,610.
D) $345,810.

Quizplus · Accepted Answer

The cost of goods purchased is calculated as Purchases + Freight-In - Purchase Discounts - Purchase Returns and Allowances = $350,010 + $7,800 - $600 - $6,400 = $350,810.

Sampson Company's Accounting Records Show the Following for the Year