In a periodic inventory system, a company must count and determine the cost of its ending inventory.

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In a periodic inventory system, a company must count and determine the cost of its ending inventory. Cost of goods sold is then determined by using the cost of the ending inventory. Emad asks, “Why can’t you determine the cost of goods sold first instead of going through all of these steps?” Explain this to Emad.

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Financial Accounting Tools For Business Decision Making

ISBN: 9781119594574

8th Canadian Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine, Christopher D. Burnley

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