he following information is available for Houser Produce Market: Sales $225,000

Question

he following information is available for Houser Produce Market:

                Sales                                       $225,000         Freight-in                                          $11,000

                  Ending merchandise inventory      27,000      Purchase returns and allowances           4,000

                  Sales discounts                            3,000         Depreciation expense                           8,000  

                  Purchases                                 143,000         Beginning merchandise inventory         23,000

                 How much is Houser’s cost of goods sold?

Explanation / Answer

$ 1,46,000

Working:

$ 1,46,000

Working:

Beginning merchandise Inventory $           23,000 Add:Net Purchase $       1,39,000 Add:Freight in $           11,000 Goods Available for sale $       1,73,000 Less:Ending Merchandise Inventory $           27,000 Cost of goods sold $       1,46,000 Working: Purchase $       1,43,000 Less:Purchase returns and allownces $             4,000 Net Purchase $       1,39,000

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