PRACTICE QUESTIONS 3

The following information is available from ABC Company's 2006 accounting records

Rs.
Purchases 530,000
Purchase discounts 10,000
Beginning inventory 160,000
Ending inventory 215,000
Freight out 40,000

Required :
Calculate cost of goods sold

SOLUTION

Cost of Goods Sold

Beginning inventory 160,000

Purchases 530,000
(Purchase discounts) (10,000) 520,000
Ending inventory 215,000
465,000