Question

Presented below are the components in determining cost of goods sold.

Determine the missing amounts.

Answer 1

Cost of goods sold = Beginning Inventory + Purchases - Ending Inventory

Cost of goods available for sale = Beginning Inventory + Purchases

(a) Cost of goods available for sale = $80,300 + $100,000

Cost of goods available for sale = $180,300

Ending Inventory

Cost of goods sold = Beginning Inventory + Purchases - Ending Inventory

$111,000 = $80,300 + $100,000 - Ending Inventory

$111,000 = $180,300 - Ending Inventory

Ending Inventory = $180,300 - $111,000

Ending Inventory = $69,300

(b) Purchases

Cost of goods available for sale = Beginning Inventory + Purchases

$117,000 = $54,200 + Purchases

Purchases = $117,000 - $54,200

Purchases = $62,800

Cost of goods sold = Beginning Inventory + Purchases - Ending Inventory

Cost of goods sold = $54,200 + $62,800 - $36,000

Cost of goods sold = $81,000

(c) Beginning Inventory

Cost of goods available for sale = Beginning Inventory + Purchases

$159,000 = Beginning Inventory + $112,000

Beginning Inventory = $159,000 - $112,000

Beginning Inventory = $47,000

Cost of goods sold = Beginning Inventory + Purchases - Ending Inventory

Cost of goods sold = $47,000 + $112,000 - $29,000

Cost of goods sold = $130,000