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Exercise 5-13 Below is a series of cost of goods sold sections for companies B,

ID: 2547032 • Letter: E

Question

Exercise 5-13 Below is a series of cost of goods sold sections for companies B, M, O, and S. Fill in the lettered blanks to complete the cost of goods sold sections. Beginning inventory Purchases Purchase returns and allowances Net purchases Freight-in Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold $280 1,680 90 134 $ 784 0) 1,210 48,821 325 1,165 8,299 47,365 146 2,509 1,378 9,016 55,474 6,978 48,496 2,016 1,512 347 (n 1,288 1,378 LINK TO TEXT Question Attempts: 0 of 001.pdf 2017-10... 11.21 PM 2017-09. .1.58 PM 2017-11-8.38 PM

Explanation / Answer

Net purchases = Purchases - Purchase retuns

Cost of goods purchased = Net purchases + Freight in

Cost of goods available for sale = Beginning invntory + Cost of goods purchased

Cost of goods sold = Cost of goods available for sale - Ending inventory

B M O S Beginning inventory 280 134 784 5,600 (55,474-49,874) Purchases 1,680 1,210 8,624 (8,299+325) 48,821 Purchase returns and allowances 90 45 (1,165-1,210) 325 1,456 (48,821-47,365) Net purchases 1,590 (1,680-90) 1,165 8,299 47,365 Freight in 146 213 (1,378-1,165) 717 (9,016-8,299) 2,509 Cost of goods purchased 1,736 (1,590+146) 1,378 9,016 49,874 (47,365+2,509) Cost of goods available for sale 2,016 1,512 9,800 (8,512+1,288) 55,474 Ending inventory 347 134 (1,512-1,378) 1,288 6,978 Cost of goods sold 1,669 (2,016-347) 1,378 8,512 48,496