Question

Homework: Ch1&2-Homework HW SO Score: 0 of 1 pt 8 of 10 ( complete) T12-3 (similar to) Compute Cost of Goods Sold for Randy's Sporting Goods, a merchandising company, given the following information: E: (Click the icon to view the data.) i Data Table Randy Sporting Goods Calculation of Cost of Goods Sold Advertising expense Purchases of merchandise Salaries expense Freight-in and import duties Lease of store Beginning inventory Ending inventory $34,000 420,000 86,000 30,000 76,000 39,000 47,000 Cost of goods sold Print Done

Answer 1

$ Randy Sporting Goods Cost of Goods Sold Beginning inventory Plus: Purchases of merchandise Freight-in and import duties Cost of goods available for sale Less: Ending inventory Cost of goods sold 39,000 420,000 30,000 489,000 47,000 442,000 $ 489 S +

• Cost of goods sold includes the direct costs incurred for the goods sold during the period.
• It excludes all indirect costs such as selling and distribution expenses.
• Advertising expense, salaries expense, and lease of store are indirect costs.
• Freight-in and import duties are direct costs for purchasing the merchandising inventory.