Question

Applying the Cost of Goods Sold Model The following amounts were obtained from Stanwick Company's accounting records. 2019 2020 Net sales $388,600 $427,460 Cost of goods sold: Beginning inventory $36,800 (d) Purchases (a) 296,700 Goods available for sale (b) (e) Ending inventory 42,060 (f) Cost of goods sold (c) 295,390 Gross margin $117,960 (g)

Answer 1

See below

Step-by-step explanation:

2020 Beginning inventory

Beginning inventory

Add: Purchases

$296,700

Cost of goods available for sale

$296,700

Less: Ending inventory

($1,310)

Cos of goods sold

$295,390

2019 Purchases

Purchases = Ending inventory - Beginning inventory

Purchases = $42,060 - $36,800

Purchases = $5,260