Computation of Net Purchases/Cost of Goods Sold-Multiple Choice Question

Question

Computation of Net Purchases/Cost of Goods Sold

Barkley Company uses a periodic inventory system and has the following account balances: Beginning Inventory $50,000, Ending Inventory $80,000, Freight-in $12,000, Purchases $330,000, Purchase Returns and Allowances $8,000 and Purchase Discounts $6,000.

Compute each of the following:

(a) Net purchases

(b) Cost of goods available for sale

(c) Cost of goods sold