Answer:
1. $31,100
2. $104,000
Explanation:
1. Cost of goods available for sale:
= Cost of beginning inventory + Net purchase + Freight on purchase
= $60,200 + ($127,000 - $7,000) + $4,700
= $184,900
Estimated cost of goods sold:
= Sales - Gross profit
= ($265,000 - $22,000) - [40% × ($265,000 - $22,000)]
= $243,000 - $97,200
= $145,800
Estimated cost of ending inventory:
= Cost of goods available for sale - Estimated cost of goods sold - Inventory stolen
= $184,900 - $145,800 - $8,000
= $31,100
2. Cost of goods sold = Sales × (60/200)
= $243,000 × (60/200)
= $72,900
Estimated cost of ending inventory:
= Cost of goods available for sale - Estimated cost of goods sold - Inventory stolen
= $184,900 - $72,900 - $8,000
= $104,000
