Under the periodic inventory system,freight-in is an additional part of cost of goods sold.

Question

Quizplus · Accepted Answer

Under the periodic inventory system, the cost of goods sold is calculated by adding the cost of goods purchased to the beginning inventory and subtracting the ending inventory. Freight-in is considered a part of the cost of goods purchased and is hence added to the cost of goods sold. Therefore, the statement is true.

Under the Periodic Inventory System,freight-In Is an Additional Part of Cost