Question

Kingbird, Inc. accounting records show the following at the year ending on December 31, 2022.

Purchase Discounts $11900
Freight-in 16900
Purchases 705020
Beginning Inventory 41000
Ending Inventory 47600
Purchase Returns and
Allowances 13100
Using the periodic system, the cost of goods sold is:______.
a. $359,510.
b. $351,110.
c. $348,910.
d. $340,510.

Answer 1

the cost of goods sold under the periodic system is $690,320

Step-by-step explanation:

The computation of the cost of goods sold under the periodic system is as follows:

Cost of goods sold = Beginning inventory + Purchases - Purchases discount - Purchase return and allowance + Freight in - Ending inventory

= $41,000 + $705,020 - $11,900 - $13,100 + $16,900 - $47,600

= $690,320

Hence, the cost of goods sold under the periodic system is $690,320

This is the answer but the same is not provided in the given options