Question

Brief Exercise 5-01 Presented below are the components in determining cost of goods sold. Determine the missing amounts. Beginning Inventory Purchases Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold
(a) $80,000 $100,000 $ 180000 $ 40000 $120,000
(b) $50,000 $ 85000 $115,000 $35,000 $
(c) $ $110,000 $160,000 $29,000

Answer 1

Answer:

Question is not properly written. Proper question is :

Presented below are the components in determining cost of goods sold. Determine the missing amounts.  (CGS- Cost of ggods sold)

a. Beg.inv.      Purch.   Goods avail. for sale  End. inv. CGS

   80000       100000         ?                                ?        120000

b. 50,000          ?                 115000                   35000        ?

c.   ?             110000            160000                  29000        ?

Solution :

a. i)Goods available for sale = ?

ii) Ending inventory = ?

i) Goods available for sale = Beginning inventory + Purchases

i)Goods available for sale = $ 80000+100000 = $ 180,000

Ending inventory = Beginning inventory + Purchases - CGS

ii)Ending inventory = $ 80000 + $100000 - $ 120,000 = $ 60,000

b. i) Purchases = ?

ii) CGS = ?

Purchases = Goods available for sale - Beginning inventory

i) Purchases = $ 115000 - $ 50000 = $ 65000

CGS = Beginning inventory + Purchases - Ending inventory

ii) CGS = $ 50000 + $ 65000 - $ 35000 = $ 80,000

c. i) Beginning inventory = ?

ii) CGS = ?

Beginning inventory  = Goods available for sale - Purchases

i) Beginning inventory = $ 160000 - $ 110000 = $ 50000

CGS = Beginning inventory + Purchases - Ending inventory

ii) CGS = $ 50000 + $ 110000 - $ 29000 = $ 131,000