Brief Exercise 5-01 Presented below are the components in determining cost of goods sold. Determine the missing amounts. Beginning Inventory Purchases Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold

(a) $80,000 $100,000 $ 180000 $ 40000 $120,000
(b) $50,000 $ 85000 $115,000 $35,000 $
(c) $ $110,000 $160,000 $29,000

Respuesta :

Answer:

Question is not properly written. Proper question is :

Presented below are the components in determining cost of goods sold. Determine the missing amounts.  (CGS- Cost of ggods sold)

a. Beg.inv.      Purch.   Goods avail. for sale  End. inv. CGS

   80000       100000         ?                                ?        120000

b. 50,000          ?                 115000                   35000        ?

c.   ?             110000            160000                  29000        ?

Solution :

a. i)Goods available for sale = ?

ii) Ending inventory = ?

i) Goods available for sale = Beginning inventory + Purchases

i)Goods available for sale = $ 80000+100000 = $ 180,000

Ending inventory = Beginning inventory + Purchases - CGS

ii)Ending inventory = $ 80000 + $100000 - $ 120,000 = $ 60,000

b. i) Purchases = ?

ii) CGS = ?

Purchases = Goods available for sale - Beginning inventory

i) Purchases = $ 115000 - $ 50000 = $ 65000

CGS = Beginning inventory + Purchases - Ending inventory

ii) CGS = $ 50000 + $ 65000 - $ 35000 = $ 80,000

c. i) Beginning inventory = ?

ii) CGS = ?

Beginning inventory  = Goods available for sale - Purchases

i) Beginning inventory = $ 160000 - $ 110000 = $ 50000

CGS = Beginning inventory + Purchases - Ending inventory

ii) CGS = $ 50000 + $ 110000 - $ 29000 = $ 131,000

a. Cost of goods available for sale is $180,000

Ending inventory is $60,000

b. Purchases is $65,000

Cost of goods sold is $80,000

c. Beginning inventory is $50,000

Cost of goods sold is $131,000

a. Cost of goods available for sale is the sum of beginning inventory and purchases

Beginning inventory = $80,000

Purchases  = $100,000

$80,000 + $100,000 = $180,000

Ending inventory is the goods that remains in inventory of a firm at the end of the fiscal period. It is the costs of goods available for sale less cost of goods sold.

Cost of goods available for sale = $180,000

Cost of goods sold = $120,000

$180,000 - $120,000 = $60,000

b, Purchases is the cost of goods available for sale less beginning inventory

cost of goods available for sale = $115,000

beginning inventory = $50,000

$115,000 - $50,000 = $65,000

Cost of goods sold is the cost of goods available for sale less ending inventory

cost of goods available for sale = $115,000

ending inventory = $35,000

$115,000 -  $35,000 =  $80,000

c. Beginning inventory is cost of goods available for sale less purchases

cost of goods available = $160,000

purchases = $110,000

$160,000 - $110,000 = $50,000

Cost of goods sold is cost of goods available for sale less ending inventory

Cost of goods available for sale = $160,000

Ending inventory = $29,000

$160,000 - $29,000 = $131,000

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