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FAR II.C · Inventory · Application
Under a periodic system, beginning inventory is $40,000, purchases are $160,000, and the year-end count is $30,000. What is cost of goods sold?
- A $150,000
- B $170,000
- C $190,000
- D $200,000
Why: goods available $200,000 ($40,000 + $160,000) less ending inventory $30,000 = $170,000.