A company using the periodic inventory system has merchandise inventory costing $210 on hand at the beginning of the period.During the period,merchandise costing $635 is purchased.At year-end,merchandise inventory costing $160 is on hand.The cost of merchandise sold for the year is

Question

Quizplus · Accepted Answer

The formula for calculating cost of merchandise sold (COS) under periodic inventory system is:

COS = Beginning inventory + Purchases - Ending inventory

Plugging in the given values:

COS = $210 + $635 - $160 
COS = $685

Therefore, the best choice is B, $685.

A Company Using the Periodic Inventory System Has Merchandise Inventory