Question

The following information pertained to Azur Co. for the year: Purchases 102,800 Purchase discounts 10,280 Freight-in 15,420 Freight-out 5,140 Beginning inventory 30,840 Ending inventory 20,560 What amount should Azur report as cost of goods sold for the year?a. $118,220.b. $102,800.c. $123,360.d. $128,500.

Answer 1

a. $118,220

Step-by-step explanation:

The computation of the cost of good sold is shown below:

As we know that

Cost of goods sold = Beginning Inventory + Net purchases + Freight in - Ending Inventory

where,

Net purchase is

= Purchases - Purchase returns and allowances - Purchase discounts

= $102,800 - $10,280

= $95,520

And, the other items values would remain the same

so, the cost of goods sold is

= $30,840 + $92,520 + $15,420 - $20,560

= $118,220

hence, the cosr of good sold is $118,220