A company that uses the periodic inventory method provides the following information: 1. Beginning Inventory $10,000
2. Net Purchases $90,000
At the end of the period, the company does an inventory count and finds $15,000 of inventory on hand.
What is the amount of Cost of goods sold?

Question

Quizplus · Accepted Answer

To calculate the cost of goods sold using the periodic inventory method, we need to subtract the ending inventory from the sum of beginning inventory and net purchases. 
So, Cost of goods sold = Beginning Inventory + Net Purchases - Ending Inventory
Cost of goods sold = $10,000 + $90,000 - $15,000
Cost of goods sold = $85,000
Therefore, the answer is C.

A Company That Uses the Periodic Inventory Method Provides the Following