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3 years ago

11

The 2011 and 2012 Balance Sheets for Jacob, Inc. contained the following entries: 3 / 3 points Accounts receivable Inventories N

et fixed assets Accounts payable 12/31/2011 12/31/2012 $720 $452 $584 $816 $637 $659 $413 $611 Jacob had materials purchases in 2011 of $1,753 and materials purchases in 2012 of $1,957 . What did Jacob record as Cost of Goods Sold (COGS) on its 2012 income statement

1 answer:

Katarina [22]3 years ago

4 0

Answer:

<u>Cost of Goods Sold (COGS) on its 2012 income statement $1723</u>

Explanation:

Jacob, Inc.

12/31/2011 12/31/2012

Accounts receivable $720 $452

Inventories $584 $816

Net fixed assets $637 $659

Accounts payable $413 $611

Jacob had materials purchases in 2011 of $1,753 and materials purchases in 2012 of $1,957.

This COGS is calculated by the following formula :

<u></u>

Cost of Goods Sold (COGS) = Beginning Inventory + Material Purchases - Ending Inventory

COGS= $ 584 + $ 1957 - $ 816= $ 1723

Calculations

Ending Inventories $ 816

<u>Less Beginning Inv $ 584</u>

<u>Difference $ 234 </u>

Materials Purchases (2012) $1,957

<u>Difference $ 234</u>

<u>Cost of Goods Sold (COGS) on its 2012 income statement $1723</u>

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