Question

Cost of Goods Sold

Shaquille Corporation began the current year with inventory of $40,000. During the year, its purchases totaled $120,000. Shaquille paid freight charges of $8,000 for these purchases. At the end of the year, Shaquille had inventory of $49,000.

Prepare a schedule to determine Shaquille's cost of goods sold for the current year.

SHAQUILLE CORPORATION
Schedule for Cost of Goods Sold
For the Year Ended December 31, Current Year
Beginning inventory		$
	$
		$
		$

Answer 1

SHAQUILLE CORPORATION
Schedule for Cost of Goods Sold
For the Year Ended December 31, Current Year
Beginning inventory		$40,000
Purchases	$120,000
Freight in	$8,000
Net purchases                               [$120,000 + $8,000]		$128,000
Cost of goods available for sale   [$40,000 + $128,000]		$168,000
Less: Ending inventory		$49,000
Cost of goods sold                      [$168,000 - $49,000]		$119,000