COGS Determination in Periodic Inventory System

COGS Determination

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Question

Under a periodic inventory system, how is COGS determined?

Answers

A. the cost of ending inventory is subtracted from costs of goods available for sale

B. cost of goods sold is accumulated as sales are made

C. ending inventory is counted and subtracted from beginning inventory

D. none of these answers A

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Explanations

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A. B. C. D.

Explanation

Under the periodic inventory system, only the ending inventory is counted and priced. Cost of goods sold is determined by deducting the cost of the ending inventory from the cost of goods available for sale.

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