3. Consider the following facts: - Company V uses a periodic inventory system -

ID: 2448155 • Letter: 3

Question

Consider the following facts:

- Company V uses a periodic inventory system

- Purchases were $600,000 during the period

- Purchase Returns and Allowances were $25,000 during the period

- Purchase Discounts were $11,000 during the period

- Freight-In was $19,000 during the period

- Beginning Inventory was $45,000

- Ending Inventory was $55,000

- Net Sales were $750,000 during the period

Cost of Goods Sold for the period was:

$613,500

$567,000

$573,000

None of these answers are correct

623,000

Consider the following facts:

- Company A purchased goods for $50,000

- The purchase terms were 2/10,n/30

- Company A returned $1,000 of the goods

- Company A paid freight of $250 on the shipment of the goods

- Company A paid the invoice within the discount period

As a result of this purchase, Company A's inventory increased by:

$48,020

None of these answers are correct.

$48,265

$49,250

$48,270

3) Net purchases= 600,000-25,000-11,000=$564,000

Freight in =$19,000

Total purchase=19000+564,000

COGS= Beg Inv+Purchases-Ending Inv

=45,000+564,000+19,000-55,000

=$573,000

2)Discount received = 2% of (50000-1000)= $980

Increase in inventory=50000-1000-980+250

=$48,270

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