Question

Kingbird, Inc. accounting records show the following for the year ending on December 31, 2022. Purchase Discounts$ 11100 Freight-in16800 Purchases698020 Beginning Inventory60000 Ending Inventory58600 Purchase Returns and Allowances12900 Using the periodic system, the cost of goods purchased is

Answer 1

Answer:

Cost of goods purchased=  $690,820

Explanation:

Giving the following information:

Purchase Discounts$ 11,100

Freight-in $16,800

Purchases $698,020

Purchase Returns and Allowances $12,900

To calculate the cost of goods purchased, we need to use the following formula:

Cost of goods purchased= Purchase - discounts - returns + freight in

Cost of goods purchased= 698,020 - 11,100 - 12,900 + 16,800

Cost of goods purchased=  $690,820