Avery Inc.uses a periodic inventory system.From the following details,calculate the cost of goods sold.
A)$26,000
B)$22,000
C)$27,100
D)$29,200

Question

Avery Inc.uses a periodic inventory system.From the following details,calculate the cost of goods sold. 
A)$26,000 
B)$22,000 
C)$27,100 
D)$29,200

Quizplus · Accepted Answer

The cost of goods sold can be calculated using the formula:

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

Using the information from the table, we have:

Beginning Inventory = $5,000 
Purchases = $25,100 
Ending Inventory = $3,000

Plugging these values into the formula, we get:

$5,000 + $25,100 - $3,000 = $27,100

Therefore, the cost of goods sold is $27,100, which corresponds to choice C.

Avery IncUses a Periodic Inventory System