The Following Refers to Periodic Inventory Compute Cost of Goods Sold

question 100

Multiple Choice

The following refers to periodic inventory: $$\begin{array} { | l | r | } \hline \text { Net sales } & \$ 198,000 \\\hline \text { Purchases } & 92,000 \\\hline \text { Purchases returns and allowances } & 1,800 \\\hline \text { Purchases discounts } & 1,250 \\\hline \text { Freight in } & 1,590 \\\hline \text { Beginning merchandise inventory } & 63,000 \\\hline \text { Ending merchandise inventory } & 37,000 \\\hline\end{array}$$ Compute cost of goods sold.

• A)$116,540
• B)$81,460
• C)$114,950
• D)$53,540

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Definitions:

Computer

An electronic device that executes specific tasks or calculations according to a set of instructions or software.

Utilized

Employed or made use of effectively.

Business

An organization in which basic resources (inputs), such as materials and labor, are assembled and processed to provide goods or services (outputs) to customers.

Journal Entry

The recording of financial transactions in the journal as part of the accounting process, where each transaction includes a debit and a credit.