Question

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

Answer 1

Answer:

a) $190,000

b) $70,000

c) $65,000

d) $81,000

e) $60,000

f) $133,000

Step-by-step explanation:

Please refer to the attached table where known and unknowns are given as per question.

(a) Costs of Goods available for sale:

The amount of cost of goods available for sale is calculated by adding the purchases and beginning inventory.

Costs of Goods available for sale = Beginning Inventory + Purchases

Costs of Goods available for sale = $80,000 + $110,000

Costs of Goods available for sale = $190,000

(b) Ending Inventory:

The amount of ending inventory is calculated by subtracting the cost of goods sold from the costs of goods available for sale.

Ending Inventory = costs of goods available for sale - cost of goods sold

Ending Inventory = $190,000 - $120,000

Ending Inventory = $70,000

(c) Purchases:

The amount of purchases is calculated by subtracting the beginning inventory from the cost of goods available for sale.

Purchases = costs of goods available for sale - beginning inventory

Purchases = $114,000 - $49,000

Purchases = $65,000

(d) Cost of Goods sold:

The amount of cost of goods sold is calculated by subtracting the ending inventory from the cost of goods available for sale.

Cost of Goods sold = costs of goods available for sale - ending inventory

Cost of Goods sold = $114,000 - $33,000

Cost of Goods sold = $81,000

(e) Beginning Inventory:

The amount of beginning inventory is calculated by subtracting  the purchases from the cost of goods available for sale.

Beginning Inventory = costs of goods available for sale - Purchases

Beginning Inventory = $160,000  - $100,000  

Beginning Inventory = $60,000

(f) Cost of Goods sold:

The amount of cost of goods sold is calculated by subtracting the ending inventory from the cost of goods available for sale.

Cost of Goods sold = costs of goods available for sale - ending inventory

Cost of Goods sold = $160,000 - $27,000

Cost of Goods sold = $133,000