Inventory Systems Periodic System Features: 1. 2. 3. Chapter 57 Purchases of merchandise increase Purchases. Ending Inventory determined by physical count. Calculation of Cost of Goods Sold: Beginning inventory Add: Purchases, net Goods available for sale Less: Ending inventory Cost of goods sold SO 1 $ 100 800 , , 000 000 900 125 , , 000 000 $ 775 , 000