A company that uses the periodic inventory provides the following information: 1. Beginning Inventory $12,000
2) Net Purchases $93,000
At the end of the period, the physical count of inventory reveals that $14,000 of inventory is on hand.
What is the amount of cost of goods sold?

Question

Quizplus · Accepted Answer

To calculate the cost of goods sold, we need to add the beginning inventory to net purchases and subtract the ending inventory.

Beginning Inventory + Net Purchases - Ending Inventory = Cost of Goods Sold

$12,000 + $93,000 - $14,000 = $91,000

Therefore, the cost of goods sold is $91,000.

A Company That Uses the Periodic Inventory Provides the Following