Question

Bill Rose owns Rose Sporting Goods. At the beginning of the year, Rose Sporting Goods had $18,000 in inventory. During the year, Rose Sporting Goods purchased inventory that cost $66,000. At the end of the year, inventory on hand amounted to $28,500.Calculate the following:a. Cost of goods available for sale during the year.b. Cost of goods sold for the year.c. Amount of inventory Rose Sporting Goods would report on the year-end balance sheet.

Answer 1

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

At the beginning of the year, Rose Sporting Goods had $18,000 in inventory.

Purchases= $66,000.

Ending inventory cost= $28,500.

A) The cost of goods available for sale is the sum of beginning inventory and the purchases.

Cost of goods available for sale= 18,000 + 66,000= $84,000

B) COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS=  84,000 - 28,500= $55,500

C) The ending inventory is the amount of goods that weren't sold:

Ending inventory= $28,500