Question

The following amounts were obtained from the accounting records of Enderle Company:

	2016	2017	2018
Beginning inventory	$38,900	(b)	(d)
Net purchases	(a)	$71,200	$91,820
Ending inventory	42,100	(c)	42,350
Cost of goods sold	83,500	90,800	(e)

Required:

Compute the missing amounts.

	2016	2017	2018
Beginning inventory	$38,900	$	$
Net purchases		$71,200	$91,820
Ending inventory	42,100		42,350
Cost of goods sold	83,500	90,800

Answer 1

• All working forms part of the answer
• Missing amount were calculated using the following calculation:

Beginning Inventory + Net purchases – Ending Inventory = Cost of Goods Sold

	2016	2017	2018
Beginning inventory	$                       38,900	$                42,100	$                22,500
Net purchases	$                       86,700	$                71,200	$                91,820
Ending inventory	$                       42,100	$                22,500	$                42,350
Cost of goods sold	$                       83,500	$                90,800	$                71,970

---Working

	2016	2017	2018
Beginning inventory	38900	42100 [=ending inventory of 2016]	22500 [=ending inventory of 2017]
Net purchases	=42100+83500-38900	71200	91820
Ending inventory	42100	=42100+71200-90800	42350
Cost of goods sold	83500	90800	=22500+91820-42350