Question

Sampson Company's accounting records show the following at the year ending on December 31, 2014. Purchase Discounts $ 5,600 Freight-In 7,800 Purchases 350,000 Beginning Inventory 23,500 Ending Inventory 28,800 Purchase Returns and Allowances 6,400 Using the periodic system, the cost of goods sold is:

Answer 1

$340,500

Step-by-step explanation:

From the above information, the below data are given;

Purchase discounts $5,600, freight in $7,800, purchases 350,000, beginning inventory $23,500, closing inventory $28,800, purchase returns and allowance $6,400

Therefore, using the periodic system,

Cost of goods sold .

Cost of goods sold using the periodic system is computed by adding beginning inventory and cost of goods purchased( purchases plus freight in minus purchases return minus purchases discount) and then subtracting ending inventory.

= $23,500 + ($350,000 +$7,800 - $6,400 -$5,600) - $28,800

= $340,500