Cobb Company's accounting records show the following at the year ending on December 31, 2022: Assuming the company uses a periodic system, the cost of goods purchased is

Question

Cobb Company's accounting records show the following at the year ending on December 31, 2022:  Assuming the company uses a periodic system, the cost of goods purchased is

Quizplus · Accepted Answer

Using the periodic inventory system, the purchases account is credited for the cost of goods purchased during the accounting period. To calculate the cost of goods purchased, we add the beginning inventory to the purchases and subtract the ending inventory.

Beginning Inventory = $47,000
+ Purchases = $347,000
- Ending Inventory = $00,400

= Cost of Goods Purchased = $393,600 (Option C)

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