Describe the calculation of cost of goods sold when using the periodic inventory system
What will be an ideal response
The Cost of Goods Sold account is calculated by adding Beginning Merchandise Inventory plus Net Cost of Purchases less Ending Inventory. Net Cost of Purchases is calculated by taking Purchases less Purchase Returns and Allowances less Purchase Discounts plus Freight In.
Business
You might also like to view...
The moving average forecast method is used when demand has an observable trend or seasonality
Indicate whether the statement is true or false.
Business
To institutionalize change, managers should (1) turn students into teachers, (2) build financial capital, and (3) establish rules, guidelines and feedback mechanisms. Which statements are correct?
A) Statements 1 and 2 B) Statements 1 and 3 C) Statements 2 and 3 D) Only statement 1
Business