A corporation compiled the information given below for their auditor.The corporation uses a periodic inventory system. $\begin{array}{|l|l|l|}
\hline &2001&2002\
\hline \text { Purchases................. } & \$ 240 & \$ 160 \
\hline \text { Goods out on consignment .... } & 0 & 80 \
\hline \text { Beginning inventory } & 900 & ? \
\hline \text { Ending inventory } & ? & ? \
\hline \text { Physical inventory count .................... } & \text { Unavailable } & 240 \
\hline \text { Cost of goods sold. ............. } & 360 & ?\\hline
\end{array}$ What was the amount of cost of goods sold for 2002?
A)$620
B)$700
C)$780
D)$900

Question

A corporation compiled the information given below for their auditor.The corporation uses a periodic inventory system. $\begin{array}{|l|l|l|}
\hline &2001&2002\
\hline \text { Purchases................. } & \$ 240 & \$ 160 \
\hline \text { Goods out on consignment .... } & 0 & 80 \
\hline \text { Beginning inventory } & 900 & ? \
\hline \text { Ending inventory } & ? & ? \
\hline \text { Physical inventory count .................... } & \text { Unavailable } & 240 \
\hline \text { Cost of goods sold. ............. } & 360 & ?\\hline 
\end{array}$ What was the amount of cost of goods sold for 2002?
A)$620
B)$700
C)$780
D)$900

Quizplus · Accepted Answer

The cost of goods sold for 2002 is $700. This is calculated as follows:Beginning inventory + Purchases - Ending inventory = Cost of goods sold? + 160 - 240 = 700? = 700

A Corporation Compiled the Information Given Below for Their Auditor