Inventorycostconsistsoftwoelements:beginninginventoryand( ).

A. endinginventory
B. costofgoodspurchased
C. costofgoodssold
D. costofgoodsavailableforsale

Beginning inventory is $30 000, ending inventory is $25 000, and cost of goods purchased is $45 000. What is cost of goods sold?

A. $10 000
B. $40 000
C. $45 000
D. $50 000

When an entity using a periodic inventory system pays shipping cost on inventory it has purchased, it debits:

A. Inventory
B. Purchases
C. Freight-in
Delivery Expense

Gross purchases are $17 000, purchase returns and allowances are $3000, and Freight-in is $1000. Cost of purchases is :

A. $17 000
B. $14 000
C. $13 000
D. $15 000

Net sales are $120 000, COGS is $50 000, and operating expense are $30 000. What is profit?

A. $120 000
B. $90 000
C. $70 000
D. $40 000

Underaperiodicinventorysystem,accountisusedforthecostofgoodswhenmerchandiseispurchasedforresaletocustomers.

FreightInisaddedtonetpurchasestoproduce.