how do i compute the cost of goods sold
An alternative way to calculate the cost of goods sold is to use the periodic inventory system, which uses the following formula: Beginning inventory + Purchases-Ending inventory = Cost of goods sold.Thus, if a company has beginning inventory of $1,000,000, purchases during the period of $1,800,000, and ending inventory of $500,000, its cost of goods sold for the period is $2,300,000.n alternative way to calculate the cost of goods sold is to use the periodic inventory system, which uses the following formula: Beginning inventory + Purchases-Ending inventory = Cost of goods sold.