Question

Durable Equipment Company uses the periodic inventory system. Durable reported 9- the following selected amounts at June 30,

                           9a- Compute the cost of goods sold

   9b. compute Gross Profit

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Answer #1

9.a

Computation of cost of goods sold:

Cost of goods sold = Opening inventory + Net purchase + Freight in - Ending inventory

Net purchase = 96000 - 5000 - 8500 = 82500

Cost of goods sold = 2200 + 82500 + 3200 - 19000

= 68900

9.b

Computation of Gross profit:

Gross profit = Net sale Revenue - Cost of goods sold

= 212400 - 68900 = 143500

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                           9a- Compute the cost of goods sold    9b. compute Gross Profit Durable Equipment Co
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