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 sold 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 sold is

Quizplus · Accepted Answer

Cost of goods sold can be calculated as:
Beginning inventory + Purchases - Ending inventory.
Beginning inventory = $160,000
Purchases = $640,000
Ending inventory = $417,000

Therefore,
Cost of goods sold = $160,000 + $640,000 - $417,000 = $383,000.

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