From the following details of a merchandiser, calculate the Cost of Goods Sold. (Assume the merchandiser uses the periodic inventory system.)
A)$116,540
B)$81,460
C)$114,950
D)$53,540

Question

From the following details of a merchandiser, calculate the Cost of Goods Sold. (Assume the merchandiser uses the periodic inventory system.) 
A)$116,540 
B)$81,460 
C)$114,950 
D)$53,540

Quizplus · Accepted Answer

To calculate the Cost of Goods Sold using the periodic inventory system, we need to use the following formula: 
Beginning Inventory + Purchases - Ending Inventory = Cost of Goods Sold

From the information given, we can calculate the following:

Beginning Inventory = $16,500 
Purchases = $108,480 
Ending Inventory = $8,440

Plugging these values into the formula:

$16,500 + $108,480 - $8,440 = $116,540

Therefore, the Cost of Goods Sold is $116,540. Choice A is the correct answer.

From the Following Details of a Merchandiser, Calculate the Cost