▪ The income statement column reports the accounts
used in the calculation of cost of goods sold
Worksheet – periodic inventory
11
Calculation of the Cost of Goods Sold under the periodic inventory system
$
Opening inventory 56,000
Add: Purchases 530,000
Less: Purchase Returns and Allowances 4,000
Less: Purchase Discounts 8,000
Add: Transportation In 13,000
Equals: Cost of merchandise available for sale 587,000
Less: Ending inventory 68,000
Equals: Cost of Goods Sold 519,000