Robin, Inc. uses a periodic inventory system. Use the following details to calculate the cost of goods sold. $$\begin{array} { | l | r | }
\hline \text { Beginning merchandise inventory } & \$ 5,000 \
\hline \text { Ending merchandise inventory } & 2,500 \
\hline \text { Purchases } & 20,000 \
\hline \text { Purchase Discounts } & 800 \
\hline \text { Purchase Returns and Allowances } & 1,300 \
\hline \text { Freight In } & 4,200 \
\hline
\end{array}$$
A) $22,100
B) $17,900
C) $24,600
D) $27,100

Question

Robin, Inc. uses a periodic inventory system. Use the following details to calculate the cost of goods sold. $$\begin{array} { | l | r | } 
\hline \text { Beginning merchandise inventory } & \$ 5,000 \
\hline \text { Ending merchandise inventory } & 2,500 \
\hline \text { Purchases } & 20,000 \
\hline \text { Purchase Discounts } & 800 \
\hline \text { Purchase Returns and Allowances } & 1,300 \
\hline \text { Freight In } & 4,200 \
\hline
\end{array}$$
A) $22,100
B) $17,900
C) $24,600
D) $27,100

Quizplus · Accepted Answer

To calculate the cost of goods sold, we need to start with the beginning inventory, add the purchases made during the period, and then subtract the ending inventory. 
The calculation is: 
Beginning inventory = $12,500 
Add purchases = $37,600 
Total inventory available = $50,100 
Subtract ending inventory = $25,500 
Cost of goods sold = $24,600 (Option C)

Robin, Inc A) $22,100 B) $17,900 C) $24,600 D) $27,100

Robin, Inc A) $22,100
B) $17,900
C) $24,600
D) $27,100