The following refers to periodic inventory: $$\begin{array} { | l | r | }
\hline \text { Net sales } & \$ 198,000 \
\hline \text { Purchases } & 92,000 \
\hline \text { Purchases returns and allowances } & 1,800 \
\hline \text { Purchases discounts } & 1,250 \
\hline \text { Freight in } & 1,590 \
\hline \text { Beginning merchandise inventory } & 63,000 \
\hline \text { Ending merchandise inventory } & 37,000 \
\hline
\end{array}$$ Compute cost of goods sold.
A)$116,540
B)$81,460
C)$114,950
D)$53,540

Question

The following refers to periodic inventory: $$\begin{array} { | l | r | } 
\hline \text { Net sales } & \$ 198,000 \
\hline \text { Purchases } & 92,000 \
\hline \text { Purchases returns and allowances } & 1,800 \
\hline \text { Purchases discounts } & 1,250 \
\hline \text { Freight in } & 1,590 \
\hline \text { Beginning merchandise inventory } & 63,000 \
\hline \text { Ending merchandise inventory } & 37,000 \
\hline
\end{array}$$ Compute cost of goods sold.
A)$116,540
B)$81,460
C)$114,950
D)$53,540

Quizplus · Accepted Answer

Cost of goods sold = Beginning merchandise inventory + Purchases - Purchases returns and allowances - Purchases discounts + Freight in - Ending merchandise inventory= 63,000 + 92,000 - 1,800 - 1,250 + 1,590 - 37,000= $116,540

The Following Refers to Periodic Inventory Compute Cost of Goods Sold