Question

The Playa Company has the following information in its records. Certain data have been intentionally omitted ($ in thousands). Required:
Determine the missing numbers.

2013 2014 2015
Beginning inventory _____ _____ 225
Cost of goods sold 627 621 _____
Ending inventory _____ 225 216
Cost of goods available for sale 876 _____ 800
Purchases (gross) 630 _____ 585
Purchase discounts 18 15 _____
Purchase returns 24 30 14
Freight-in 13 32 16

Answer 1

Answer:

Explanation:

using the following formulars

Net purchase = (Gross Purchase) - (purchase return) - (purchase discount) + freight-in

Beginning inventory + Net purchases = cost of goods available for sales

Cost of goods sold = cost of goods available for sale - ending inventory

for 2013 we have that

beginning inventory = cost of goods available for sale - net purchases

Net purchases = 630 - 24  - 18 + 13 = 601

2013, beginning inventory = 876- 601 = 275

Ending inventory = 876 - 627 = 249

2014,

Begning inventory = closing inventory of 2013 = 249

Cost of goods available for sale = 621  + 225 = 846

Net purchase  -Cost of goods available for sale - beginning inventory = 846   - 249 = 597

Gross purchase = 597 + 15 + 30 - 32 = 610

2015

Cost of good sold = 800 - 216 = 784

Net purchase = 800 - 225 = 575

purchase discount = 585 -575 - 14 + 16 = 12