Answer:
A. Ending Inventory = $58,000
B. Purchases = $67,900; Cost of goods sold = $79,700
C. Beginning Inventory = $39,000; Cost of goods sold = $128,700
Explanation:
The following statement is used to calculate cost of goods sold:
Beginning Inventory
Add: Purchases
Cost of Goods Available for Sale
Less: Ending Inventory
<em>Cost of Goods Sold</em>
Requirement (A)
Beginning Inventory = $81,100
Add: Purchases = $98,900
Cost of Goods Available for Sale = $180,000
Less: Ending Inventory = $58,000 (Note - 1)
Cost of goods sold = $122,000
Note - 1
Cost of Goods Available for Sale - Ending Inventory = Cost of goods sold
$180,000 - Ending Inventory = $122,000
or, - Ending Inventory = $122,000 - $180,000
Therefore, Ending Inventory = $58,000
Requirement (B)
Beginning Inventory = $48,100
Add: Purchases = $67,900 (Note - 2)
Cost of Goods Available for Sale = $116,000
Less: Ending Inventory = $36,300
Cost of goods sold = $79,700 (Note - 3)
Note - 2
Beginning Inventory + Purchases = Cost of Goods Available for Sale
or, $48,100 + Purchases = $116,000
or, Purchases = $116,000 - $48,100
Purchases = $67,900
Note - 3
Cost of Goods Available for Sale - Ending Inventory = Cost of goods sold
$116,000 - 36,300 = Cost of goods sold
Cost of goods sold = $79,700
Requirement (C)
Beginning Inventory = $39,000 (Note - 4)
Add: Purchases = $119,000
Cost of Goods Available for Sale = $158,000
Less: Ending Inventory = $29,300
Cost of goods sold = $128,700
Note - 4
Beginning Inventory + Purchases = Cost of Goods Available for Sale
or, Beginning Inventory + $119,000 = $158,000
or, Beginning Inventory = $158,000 - $119,000
Beginning Inventory = $39,000
