Below is a series of cost of goods sold sections for companies B, F, L, and R. I

ID: 2346025 • Letter: B

Question

Below is a series of cost of goods sold sections for companies B, F, L, and R.

Instructions

Fill in the lettered blanks to complete the cost of goods sold sections.
B F L R

Beginning Inventory $135 $55 $1,145 (j)
Purchases 1,944 1,540 (g) 45,917
Purchase returns and allowances 52 (d) 305 (k)
Net Purchases (a) 1,087 6,450 39,562
Freight-in 125 (e) (h) 2,781
Cost of goods purchased (b) 1,670 8,309 (l)
Cost of goods available for sale 2,152 1,725 (i) 50,637
Ending inventory 347 (f) 1,880 7,180
Cost of goods sold (c) 1,240 7,574 43,457

I just need the equation on how to do this.
What needs to me added, subtracted, etc.

Explanation / Answer

purchases - purchase returns and allowances = net purchases

net purchases + freight in = cost of goods purchased

Beginning inventory + cost of goods purchased = cost of goods available for sale

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

a = net purchases = purchases - purchases R & A = 1944 - 52 = 1892

b = cost of goods purchased = net purchases + freight in = 1892 + 125 = 2017

c = cost of goods sold = cost of goods availalbe for sale - ending inventory = 2152 - 347 = 1805

d = purchase returns and allowances = purchases - net purchases = 1540 - 1087 = 453

e = freight in = cost of goods purchased - net purchases = 1670 - 1087 = 583

f = ending inventory = cost of goods available for sale - cost of goods sold = 1725 - 1240 = 485

g = purchases = net purchases + purchases r & A = 6450 + 305 = 6755

h = freight in = cost of goods purchased - net purchases = 8309 - 6450 = 1859

i = cost of goods available for sales = cost of goods sold + ending invnetory = 1880 + 7574 = 9454

L = cost of goods purchased = net purchase + freight in = 39562 + 2781 = 42343

k = purchase R&A = purchases - net purchases = 45917 - 39562 = 6355

j = begining inventory = cost of good available for sale - cost of goods purchased = 50637 - 42343 = 8294

beg. Inv.

135

1145

8294

purch

1944

1540

6755

45917

purch r&a

453

305

6355

net purch

1892

1087

6450

39562

freight in

125

583

1859

2781

cost of goods purch

2017

1670

8309

42343

cost of goods availf or sale

2152

1725

9454

50637

end inv

347

485

1880

7180

cost of goods sold

1805

1240

7574

43457