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In a periodic inventory system, the cost of goods sold is determined as follows Select one: O a A physical count is made of all tems sold throughout the year, and a cost flow assumption is applied at year-end O b. Year-end inventory, plus purchases during the O c. Net sales, less the balance in the Gross Profit account year, less the inventory at the beginning of the year
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Answer #1

The answer is D)

Under the periodic inventory system,where the inventory account only requires updation at the end of the period to show the quantity and cost of both the goods that are available as well as the goods sold during that period,the cost of goods sold is determined at the end of the period by subtracting year end inventory from cost of goods available for sale during that period.

In simple terms: COGS = opening stock + net purchases - closing stock

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