Hanson Company uses a periodic inventory system. For 2014, its beginning inventory was $74,000; purchases of inventory were $328,000; and inventory at the end of the period was $89,000. What was the amount of Hanson's cost of goods sold for 2014?

Question

Quizplus · Accepted Answer

The cost of goods sold can be calculated as follows:

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

$74,000 + $328,000 - $89,000 = $313,000

Therefore, the answer is C) $313,000.

Hanson Company Uses a Periodic Inventory System