In order to determine cost of goods sold in a periodic inventory system we
A) subtract ending inventory from beginning inventory.
B) subtract ending inventory from cost of goods available for sale.
C) subtract purchases from ending inventory.
D) add purchases to beginning inventory.

Question

Quizplus · Accepted Answer

In a periodic inventory system, the cost of goods sold (COGS) is determined by subtracting the ending inventory from the cost of goods available for sale. This calculation accounts for all goods that were available to be sold during the period, whether they were part of the beginning inventory or purchased during the period, and then removes the goods that were not actually sold (ending inventory) to find the cost of those that were sold.

In Order to Determine Cost of Goods Sold in a Periodic