Sampson Company's accounting records show the following at the year ending on December 31, 2017. $$\begin{array} { l r }
\text { Purchase Discounts } & \$ 11,200 \
\text { Freight-In } & 15,600 \
\text { Purchases } & 700,020 \
\text { Beginning Inventory } & 47,000 \
\text { Ending Inventory } & 57,600 \
\text { Purchase Returns and Allowances } & 12,800
\end{array}$$ Using the periodic system, the cost of goods sold is
A)$702,220.
B)$697,820.
C)$681,020.
D)$719,020.

Question

Sampson Company's accounting records show the following at the year ending on December 31, 2017. $$\begin{array} { l r } 
\text { Purchase Discounts } & \$ 11,200 \
\text { Freight-In } & 15,600 \
\text { Purchases } & 700,020 \
\text { Beginning Inventory } & 47,000 \
\text { Ending Inventory } & 57,600 \
\text { Purchase Returns and Allowances } & 12,800
\end{array}$$ Using the periodic system, the cost of goods sold is
A)$702,220.
B)$697,820.
C)$681,020.
D)$719,020.

Quizplus · Accepted Answer

The cost of goods sold (COGS) is calculated as: Beginning Inventory + Purchases - Purchase Returns and Allowances + Freight-In - Purchase Discounts - Ending Inventory. Plugging in the values: $47,000 + $700,020 - $12,800 + $15,600 - $11,200 - $57,600 = $681,020.

Sampson Company's Accounting Records Show the Following at the Year