Requirements Supply the missing amounts in the preceding table. Beginning Ending
ID: 2447781 • Letter: R
Question
Requirements Supply the missing amounts in the preceding table.
Beginning
Ending
Net Sales
Merchandise
Net Cost of
Merchandise
Cost of
Gross
Company
Revenue
Inventory
Purchases
Inventory
Goods Sold
Profit
Potato
$101,000
$20,000
$62,000
$17,000
(a)
$36,000
Tomato
(b)
24,000
92,000
(c)
90,000
44,000
Lettuce
90,000
(d)
57,000
25,000
60,000
(e)
Carrot
83,000
12,000
(f)
8,000
(g)
46,000
Beginning
Ending
Net Sales
Merchandise
Net Cost of
Merchandise
Cost of
Gross
Company
Revenue
Inventory
Purchases
Inventory
Goods Sold
Profit
Potato
$101,000
$20,000
$62,000
$17,000
(a)
$36,000
Tomato
(b)
24,000
92,000
(c)
90,000
44,000
Lettuce
90,000
(d)
57,000
25,000
60,000
(e)
Carrot
83,000
12,000
(f)
8,000
(g)
46,000
Explanation / Answer
Workings:
a) COGS = Beginning Inventory+ Purchases - Ending Inventory 20,000+62,000-17,000 = 65,000
b) Net Sales revenue = COGS+ Gross profit = 90,000+44,000 = $134,000
c) Ending merchandise Inventory = Purchases + beginning inventory - COGS = 92,000+24,000-90,000 = 26,000
d) Beginning Inventory = COGS + Ending Inventory - Purchases = 60,000 +25,000-57,000 = 28,000
e) Gross Profit = Sales - COGS = 90,000-60,000 = 30,000
f) Net cost of purchases = COGS + Ending Inventory - beginning Inventory = 37,000+8,000-12,000 = 33,000
Note : We should first calculate COGS to arrive at Cost of purchases (compute g before f)
g) COGS = Sales - Gross profit = 83,000-46,000 = 37,000
Company Net Sales revenue Beginning Merchandise Inventory Net Cost of Purchases Ending Merchandise Inventory COGS Gross Profit Potato $101,000 $20,000 $62,000 $17,000 65000 $36,000 Tomato 134,000 24,000 92,000 26,000 90,000 44,000 Lettuce 90,000 28,000 57,000 25,000 60,000 30,000 Carrot 83,000 12,000 33,000 8,000 37,000 46,000Related Questions
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