Question

The following data are for MarvinMarvin Department Store. The account balances (in thousands) are for 20172017. LOADING... (Click the icon to view the account balances.) Requirements 1. Compute (a) the cost of goods purchased and (b) the cost of goods sold. 2. Prepare the income statement for 20172017. Requirement 1. Compute (a) the cost of goods purchased and (b) the cost of goods sold. (a) Calculate the cost of goods purchased by completing the schedule. (If a box is not used in the schedule, leave the box empty; do not select a label or enter a zero.) Marvin Department Store Schedule of Cost of Goods Purchased For the Year Ended December 31, 2017 (in thousands) Add: Deduct: Cost of goods purchased

Marketing, distribution, and customer-service costs	$37,000
Merchandise inventory, January 1, 2017	27,000
Utilities	17,000
General and administrative costs	43,000
Merchandise inventory, December 31, 2017	34,000
Purchases	155,000
Miscellaneous costs	4,000
Transportation-in	7,000
Purchase returns and allowances	4,000
Purchase discounts	6,000
Revenues	280,000

Answer 1

1(a)

Marvin Department store
Scheduled of cost of goods purchased
For the year ended December 31,2017
(In thousands)
Purchases		$155,000
Add: transportation - in		$7,000
		$162,000
Deduct:
Purchases return and allowances	$4,000
Purchase discount	$6,000	($10,000)
Cost of good purchased		$152,000

1(b)

Marvin department store
Scheduled of cost of good sold
For the year ended December 31,2017
(In thousands)
Beginning merchandise inventory, January 1, 2017	$27,000
Cost of good purchased (see above)	$152,000
Cost of goods available for sale	$179,000
Ending merchandise inventory , December 31, 2017	($34,000)
Cost of good sold	$145,000

Requirement 2)

Marvin department store
Income statement
year ended December 31, 2017
(In thousands)
Revenues		$280,000
Cost of good sold (see above)		($145,000)
Gross Margin		$135,000
Operating costs:
Marketing, distribution, and customer- service costs	$37,000
Utilities	$17,000
General and administrative costs	$43,000
Miscellaneous costs	$4,000
Total operating cost		($101,000)
Operating income		$34,000

Answer 2

Answer to following data