Cobb Company's accounting records show the following at the year ending on December 31, 2015: $$\begin{array} { l r }
\text { Purchase Discounts } & \$ 11,200 \
\text { Freight - In } & 15,600 \
\text { Purchases } & 402,000 \
\text { Beginning Inventory } & 47,000 \
\text { Ending Inventory } & 57,600 \
\text { Purchase Returns } & 12,800
\end{array}$$ Using the periodic system, the cost of goods purchased is
A) $378,000.
B) $383,000.
C) $393,600.
D) $404,200.

Question

Cobb Company's accounting records show the following at the year ending on December 31, 2015: $$\begin{array} { l r } 
\text { Purchase Discounts } & \$ 11,200 \
\text { Freight - In } & 15,600 \
\text { Purchases } & 402,000 \
\text { Beginning Inventory } & 47,000 \
\text { Ending Inventory } & 57,600 \
\text { Purchase Returns } & 12,800
\end{array}$$ Using the periodic system, the cost of goods purchased is
A) $378,000.
B) $383,000.
C) $393,600.
D) $404,200.

Quizplus · Accepted Answer

The cost of goods purchased is calculated as: Purchases ($402,000) - Purchase Returns ($12,800) - Purchase Discounts ($11,200) + Freight-In ($15,600) = $393,600.

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