Calculate the cost of goods sold for a merchandiser using the periodic inventory system from the following details.
A)$500,000
B)$478,000
C)$490,000
D)$625,000

Question

Calculate the cost of goods sold for a merchandiser using the periodic inventory system from the following details. 
A)$500,000 
B)$478,000 
C)$490,000 
D)$625,000

Quizplus · Accepted Answer

In periodic inventory system, Cost of Goods Sold is calculated using the following formula:

Beginning Inventory + Purchases - Ending Inventory = Cost of Goods Sold

Given: 
Beginning Inventory = $150,000
Purchases = $600,000
Ending Inventory = $272,000

Cost of Goods Sold = $150,000 + $600,000 - $272,000 = $478,000

Therefore, the answer is option B) $478,000.

Calculate the Cost of Goods Sold for a Merchandiser Using