A Company Using the Periodic Inventory System Has Merchandise Inventory

Multiple Choice

A company using the periodic inventory system has merchandise inventory costing $210 on hand at the beginning of a period. During the period, merchandise costing $635 is purchased. At year-end, merchandise inventory costing $160 is on hand. The cost of merchandise sold for the year is

A) $795
B) $685
C) $265
D) $635