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

Under the periodic inventory system, the cost of goods sold is calculated as:

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

From the information given in the image,
Beginning Inventory = $90,000 
Purchases = $400,000 
Ending Inventory = $12,000

Using the above formula, we calculate the cost of goods sold as:

Cost of Goods Sold = $90,000 + $400,000 - $12,000 = $478,000

Therefore, the best choice is B, which is $478,000.

Calculate the Cost of Goods Sold for a Merchandiser Using