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  • (A) Cost of Goods Sold

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    Ganda Christoper
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    The document shows the calculation of cost of goods sold and various related accounts. It begins with the basic calculation of cost of goods sold using net sales and gross profit figures. It then shows a calculation of cost of goods available for sale using beginning inventory, purchases net of returns and discounts, and freight in. Finally, it calculates ending inventory by taking the cost of goods available and subtracting the cost of goods sold.

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    The document shows the calculation of cost of goods sold and various related accounts. It begins with the basic calculation of cost of goods sold using net sales and gross profit figures. It then shows a calculation of cost of goods available for sale using beginning inventory, purchases net of returns and discounts, and freight in. Finally, it calculates ending inventory by taking the cost of goods available and subtracting the cost of goods sold.

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    © All Rights Reserved
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    4 views1 page

    (A) Cost of Goods Sold

    Uploaded by

    Ganda Christoper
    The document shows the calculation of cost of goods sold and various related accounts. It begins with the basic calculation of cost of goods sold using net sales and gross profit figures. It then shows a calculation of cost of goods available for sale using beginning inventory, purchases net of returns and discounts, and freight in. Finally, it calculates ending inventory by taking the cost of goods available and subtracting the cost of goods sold.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 1

    (a) Cost of goods sold.

    Net Sales $ 900.000


    Gross Profit ($ 340.000)
    Cost Of Goods Sold $ 560.000

    (b) Cost of goods available for sale

    Beginning Inventory $ 80.000


    Purchases $ 560.000
    Less:
    Purchase returns and allowances
    Purchase discounts $ 8.000
    Net Purchases $ 15.000 $ 23.000
    Add: Freight In $ 537.000
    $ 10.000
    Cost Of Goods purchased $ 547.000
    Cost of goods available for sale $ 627.000

    (c) Ending inventory.

    Cost of goods available for sale $ 627.000


    Cost of goods Sold ($ 560.000)
    Ending Inventory $ 67.000

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