TACADAO, EVE ROSE S.

12-ABM A
SHORT PROBLEMS IN MERCHANDISING

PROBLEM 1- NET SALES

Sales 930,000
Less: Sale discount 18,000
Sale return and allowances 15,000 33,000
Net sales 897,000

PROBLEM 2-Cost of Goods Available for sale

Merchandise Inventory, January 1, 2020 360,000
Add: Net Purchases
Purchases 620,000
Add: Freight in 10,000
Gross Purchases 630,000
Less: Purchase returns and allowances 15,000
Purchase Discount 16,000 31,000 599,000
Cost of goods available for sale 959,000

PROBLEM 3-Cost of Goods Sold

Merchandise Inventory, January 1, 2020 380,000
Add: Net Purchases
Purchases 600,000
Add: Freight in 11,000
Gross Purchases 611,000
Less: Purchase returns and allowances 8,000
Purchase discounts 10,000 18,000 593,000
Cost of goods available for sale 973,000
Less: Merchandise inventory, ending -480,000
Cost of Goods Sold 493,000

PROBLEM 4- GROSS SALES

Gross Profit 280,000
Cost of Sales 960,000
Net sales 1,240,000
Add: Sales returns and allowances 10,000
Sales discount 12,000
Sales 1,262,000

PROBLEM 5- Merchandise Inventory, beginning

Cost of goods sold 724,000
Add: Merchandise inventory, December 31, 2020 480,000
Less: Net Purchases
Purchases 650,000
Add: Freight in 18,000
Gross Purchases 668,000
Less: Purchase returns and allowances 10,000
Purchase discounts 15,000 25,000 643,000
Merchandise Inventory, January 1, 2020 561,000

PROBLEM 6- Cost of Goods Sold

Merchandise Inventory, January 1, 2020 390,000
Add: Net Purchases
Purchases 850,000
Add: Freight-in 25,000
Gross Purchases 875,000
Less: Purchase discounts 18,000
Purchase returns and allowances 15,000 33,000 842,000
Cost of goods available for sale 1,232,000
Less: Merchandise inventory, ending -560,000
Cost of Goods Sold 672,000