PRACTICE PROBLEM A Periodic and perpetual inventory control calculations You are the senior accountant for a shoe wholesaler that uses the periodic inventory method. You have determined the following information from your companys records, which you assume is correct: a Inventory of $246 720 was on hand at the start of the year. b Purchases for the year totalled $1 690 000. Of this, $1 412 000 was purchased on account; that is, accounts payable was credited for this amount at the time of the purchase. c The ending balance in accounts payable was $47 500 higher than the opening balance. d A year-end inventory count revealed inventory of $324 800. Required: 1 2 Calculate COGS according to the periodic inventory method. Assume now that your company uses the perpetual method of inventory control, and that your records show that $1 548 325 of inventory (at cost) was sold during the year. What is the adjustment needed to correct the records, given the inventory count in item d above? What might the need for this adjustment indicate about company operations?