Question

Below is a series of cost of goods sold sections for Mikey Inc., Nancie Co., and Oscar Inc.Mikey Nancie OscarBeginning inventory $ 250 $ 120 $ (g)Purchases 1,700 1,080 43,590Purchase returns and allowances 40 (d) (h)Net purchases (a) 1,030 42,090Freight-in 130 (e) 2,740Cost of goods purchased (b) 1,230 (i)Cost of goods available for sale 2,040 1,350 49,530Ending inventory 310 (f) 6,230Cost of goods sold (c) 1,130 43,300InstructionsFill in the lettered blanks to complete the cost of goods sold sections. (SHOW ALL WORK)

Answer 1

To complete the cost of goods sold section, subtract purchase returns and allowances from purchases to find net purchases. Add net purchases to freight-in to find the cost of goods purchased. Subtract ending inventory from the cost of goods available for sale to find the cost of goods sold.

Step-by-step explanation:

The cost of goods sold section in a company's financial statement shows the cost of the inventory that was sold during a specific period of time. To complete the cost of goods sold section for Mikey Inc., Nancie Co., and Oscar Inc., we need to fill in the blanks using the given information.

1. To find the net purchases, we need to subtract the purchase returns and allowances from the purchases. For Mikey Inc., the net purchases would be $1,700 - $40 = $1,660.
2. To find the cost of goods purchased, we need to add the net purchases to the freight-in. For Mikey Inc., the cost of goods purchased would be $1,660 + $130 = $1,790.
3. To find the cost of goods sold, we need to subtract the ending inventory from the cost of goods available for sale. For Mikey Inc., the cost of goods sold would be $2,040 - $310 = $1,730.

Answer 2

1.Beginning Inventory 250 120 g=4,700

2.Purchases 1,700 1,080 43,590

3.return and allowance 40 d=50 h=1,500

4.Net purchases a=1,740 1,030 42,090

5.Freight-in 130 e=200 2,740

6.Cost of goods

purchased b=1,870 1,230 i=44,830

7.Cost available

for Sale 2,040 1,350 49,530

8.Ending Inventory 310 f=220 6,230

9.Cost of Good Sold c=1,910 1,130 43,300

Step-by-step explanation:

net purchases = purchase less return and allowance.

a: 1,700 + 40 = 1,740

d: 1,080 - 1,030 = 50

h= 43,590 - 42,090 = 1,500

cost of goods purchased: net purchase + freigh-in

b: 1,740 + 130 = 1,870

e: 1,230 - 1,030 = 200

i: 42,090 + 2,740 = 44,830

cost available for sale: beginning + cost of goods purchases

g = 49,530 - 44,830 = 4,700

ending inventory: available for sales - cost of good sold

c: 2,040 - 130 = 1,910

f: 1,350 - 1,130 = 220