Question

If beginning inventory is $60,000, cost of goods purchased is $380,000, sales revenue is $800,000 and ending inventory is $50,000, how much is cost of goods sold under a periodic system

Answer 1

$390000

Step-by-step explanation:

Given: Beginning inventory= $60000

Cost of goods purchased = $380,000

Sales revenue= $800000.

Ending inventory= $50000.

The Periodic inventory system is used to determine the amount of inventory available at the end of each accounting period.

Cost of goods sold=
`beginning\ inventory+ cost\ of\ goods\ purchased- ending\ inventory`

⇒ Cost of goods sold=
`60000+380000-50000`

⇒ Cost of goods sold=
`\$ 440000 - \$ 50000`

∴ Cost of goods sold=
`\$ 390000`.

Hence, $390000 is the cost of goods sold under a periodic system.