Question

A company using the periodic inventory system has inventory costing $210 on hand at the beginning of a period. During the period, merchandise costing $635 is purchased. At year-end, inventory costing $160 is on hand. The cost of goods sold for the year is _______.

Answer 1

Answer:

$685

Explanation:

Data provided in the question:

Cost of inventory at the beginning of the year = $210

Cost of merchandise purchased = $635

Inventory at the end of the year = $160

Now,

cost of goods sold for the year

= Beginning inventory + Cost of merchandise purchased - Ending inventory

or

Cost of goods sold for the year = $210 + $635 - $160

or

Cost of goods sold for the year = $685