E5-15 Assignment - $240,000 - $10,000 = $230,000 Cost of...

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E5-15 Below is a series of cost of goods sold sections for companies B, F, L, and R. B F L R Beginning inventory $ 150 $ 70 $1,000 $ (6200) Purchases 1,600 1,080 (6500) 43,590 Purchase returns and allowances 40 (50) 290 (2500) Net purchases (1560) 1,030 6,210 41,090 Freight-in 110 (250) (1730) 2,240 Cost of goods purchased (1670) 1,280 7,940 (43,330) Cost of goods available for sale 1,820 1,350 (8940) 49,530 Ending inventory 310 (120) 1,450 6,230 Cost of goods sold (1510) 1,230 7,490 43,300 Solution Net sales: Sales - Sales discounts = Net sales
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Unformatted text preview: $240,000 - $10,000 = $230,000 Cost of goods purchased: Purchases - Purchase returns -Purchase discounts + Freight-in = Cost of goods purchased $162,500 -$5,200 -$3,400 + $6,100 = $160,000 Cost of goods sold: Beginning inventory + Cost of goods purchased -Ending inventory = Cost of goods sold $18,000 + $160,000 -$20,000 = $158,000 Gross profit: Net sales -Cost of goods sold = Gross profit $230,000 -$158,000 = $72,000 Net income: Gross profit -Operating expenses = Net income $72,000 -$57,000 = $15,000...
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This note was uploaded on 03/28/2011 for the course ACCT 349 taught by Professor Goyal during the Spring '09 term at University of Phoenix.

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