Question

In-class Exercise#6: May 1, Durbin Inc. purchased $ 162,500 of goods on terms 3/10, n/30. May 5, Durbin returned defective goods of $30,600. Freight-in cost was $8,400. Durbin paid the purchased invoice on May 8. Durbin had beginning inventory of $41,720 and ending inventory of $27,950. Instructions: Calculate Cost of Goods Purchased, Cost of Goods Available for Sale, and Cost of Goods Sold $ Beginning Inventory Purchases (of goods for resale) $ Less: Purchase Allowances/Returns Less: Purchase Discount Net Purchases ADD: Freight-In Inventory cost) Cost of Goods Purchased Cost of Goods Available for Sale Less: Ending Inventory Cost of Goods Sold les 5-8

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

Answer 41720 3 Beginning Inventory 4 Purchases (of goods for resale) 162500 5 Less Purchase Allowance/ Returns 30600 6 Less Purchase Discount ((162500-3060 3957 7 Net Purchases 127943 8 Add Freight In (inventory cost) 8400 9 Cost of goods Purchased 10 Cost of Goods Available for sale 11 Less Ending Inventory 12 Cost of goods sold 13 14 For any other help please comment in the comment box 136343 178063 27950 150113 15 16 Formula 17 Cost of goods sold = Opening inventory + prucases - ending inventory