Question

A company using the periodic inventory system has inventory costing $142 on hand at the beginning of a period. During the period, merchandise costing $432 is purchased. At year-end, inventory costing $400 is on hand. The cost of goods sold for the year is

Answer 1

$174

Step-by-step explanation:

The computation of the cost of goods sold is shown below:

As we know that

Cost of goods sold = Opening inventory + Purchase - ending inventory

= $142 + $432 - $400

= $174

By adding the purchase of merchandise and deducting the ending inventory from the opening inventory we can get the cost of goods sold and the same is to be applied

Hence, the cost of goods sold is $174