Using a perpetual inventory system, if beginning inventory is $160,000 and ending inventory is $130,000, what is the cost of goods sold?

To determine the cost of goods sold (COGS) using a perpetual inventory system, you can use the following formula:

COGS = Beginning Inventory + Purchases - Ending Inventory.

In this scenario, you have the beginning inventory amount of $160,000 and the ending inventory amount of $130,000. However, to find the COGS, you also need to know the total purchases made during the period.

While the specific amount for purchases is not indicated in the question, if we assume that the total purchases (the amount added to inventory during the period) are what would make COGS equal to one of the provided answer choices, we can re-arrange the formula to find purchases:

Purchases = COGS + Ending Inventory - Beginning Inventory.

From your answer, if we take $690,000 as the total of costs associated with inventory sold, then:

Purchases = $690,000 + $130,000 - $160,000

This simplifies to $690,000 + $130,000 - $160,000 = $660,000 in purchases in order to arrive at a COGS of $690,000 with the given inventory figures.

Though purchases were not explicitly mentioned in the question, based