Question

Jill’s Dress Shop had a beginning balance in its inventory account of $40,000. During the accounting period, Jill’s purchased $75,000 of inventory, returned $5,000 of inventory, and obtained $750 of purchases discounts. Jill’s incurred $1,000 of transportation-in cost and $600 of transportation-out cost. Salaries of sales personnel amounted to $31,000. Administrative expenses amounted to $35,600. Cost of goods sold amounted to $82,300.
Jills Dress shop Cost of available for sale:

Jills Dress shop Ending inventory:

Answer 1

Answer:

Costs of goods available for sale is $110,250

ending inventory is $27,950

Explanation:

Cost of goods available comprises of the opening stock of inventory plus purchases minus the goods returned as well as purchases discounts plus the cost of transportation in-cost

Costs of goods available=$40,000+$75,000-$5000-$750+$1000=$110,250

ending inventory  is calculated as the difference between costs of goods sold and costs of goods available for sale

costs of goods sold is $82,300

costs of goods available is $110,250

ending inventory=$110,250-$82,300=$27,950