Question

31.Robin Company uses a periodic inventory system. Use the following details to calculate the cost of goods sold. Beginning merchandise inventory $2,000 Ending merchandise inventory 2,300 Purchases 22,000 Purchase Discounts 700 Purchase Returns and Allowances 1,500 Freight In 4,200

Answer 1

Answer:

$23,700

Explanation:

First, we need to calculate the cost of goods purchased

Cost of goods purchase = Purchases - Returns and allowances - Discounts + Freights in

= $22,000 - $1,500 - $700 + $4,200

= $24,000

Cost of goods sold using periodic inventory system

Cost of goods sold = Beginning inventory + Cost of goods purchased - Ending inventory

= $2,000 + $24,000 - $2,300

= $23,700