Cobb Company's accounting records show the following at the year ending on December 31, 2015: Using the periodic system, the cost of goods purchased is

Question

Cobb Company's accounting records show the following at the year ending on December 31, 2015:  Using the periodic system, the cost of goods purchased is

Quizplus · Accepted Answer

The cost of goods purchased can be calculated by adding the beginning inventory to the net purchases for the year and subtracting the ending inventory.

Beginning Inventory = $49,200 
Net Purchases = $350,400 ($320,000+$30,400) 
Ending Inventory = $6,000

Cost of Goods Purchased = Beginning Inventory + Net Purchases - Ending Inventory 
= $49,200 + $350,400 - $6,000 
= $393,600

Therefore, the correct answer is C) $393,600.

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