Asked by Skylar Nicholson on Jul 11, 2024
Verified
Under the periodic inventories approach, the cost of goods sold is calculated as:
A) Opening inventories + net purchases + closing inventories
B) Opening inventories - net purchases + closing inventories
C) Beginning inventories + net purchases - ending inventories
D) Beginning inventories - net purchases - ending inventories
Net Purchases
The total cost of purchases in a period minus purchase returns, allowances, and discounts.
Cost Of Goods Sold
Direct costs attributable to the production of the goods sold by a company, including material and labor expenses.
- Recognize and employ proper costing strategies for diverse inventory types.
Verified Answer
J.
Josephine .ParienteJul 12, 2024
Final Answer :
C
Explanation :
Cost of goods sold is calculated as beginning inventories plus net purchases minus ending inventories under the periodic inventories approach.
Learning Objectives
- Recognize and employ proper costing strategies for diverse inventory types.
Related questions
The Weighted Average Inventories Costing Method Is Particularly Suitable to ...
Under the Periodic Inventories Approach, an Appropriate Journal Entry to ...
The IFRS Disallow the Use of LIFO for External Financial ...
There Are Many Different Methods Available for Costing Inventory ...
What Amount Will Be Reported in Cost of Goods Sold ...