Question

Carl (hody - A BI Exercise 1 Cramer Company uses periodic inventory procedure. Determine the cost of goods sold for the company assuming purchases during the period were $ 40,000 transportation in was $ 300, purchase returns and allowances were $ 1,000, beginning inventory was $ 25,000, purchase discounts were $ 2,000, and ending Inventory was $ 13,000.

Answer 1

B C $25,000 1 Cost of goods sold: 2 Beginning inventory 3 Add: Net purchases: 4 Purchases Add: Transportation-in Less: Purchase returns and allowances Less: Purchase discounts 8 Cost of goods available for sale 9 Less: Ending inventory 10 Cost of goods sold $40,000 $300 ($1,000) ($2,000 7 $37.300 $62,300 ($13,000) $49,300 Calculations are shown below: Bc 25000 1 Cost of goods sold: 2 Beginning inventory 3 Add: Net purchases: Purchases Add: Transportation-in Less: Purchase returns and allowances 7 Less: Purchase discounts 8 Cost of goods available for sale 9 Less: Ending inventory 10 Cost of goods sold 40000 300 -1000 -2000 =SUMB4:B7) =C2+C7 - 13000 =C8+C9