Acct306 Homework Ch02

Acct306 Homework Ch02 - 2-1 CHAPTER 2 AN INTRODUCTION TO...

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Unformatted text preview: 2-1 CHAPTER 2 AN INTRODUCTION TO COST TERMS AND PURPOSES 2-29Computing cost of goods purchased and cost of goods sold. 1a. Marvin Department Store Schedule of Cost of Goods Purchased For the Year Ended December 31, 2011 (in thousands) Purchases $155,000 Add transportation-in 7,000 162,000 Deduct: Purchase returns and allowances $4,000 Purchase discounts 6,000 10,000 Cost of goods purchased $152,000 1b. Marvin Department Store Schedule of Cost of Goods Sold For the Year Ended December 31, 2011 (in thousands) Beginning merchandise inventory 1/1/2011 $ 27,000 Cost of goods purchased (see above) 152,000 Cost of goods available for sale 179,000 Ending merchandise inventory 12/31/2011 34,000 Cost of goods sold $145,000 2. Marvin Department Store Income Statement Year Ended December 31, 2011 (in thousands) Revenues $280,000 Cost of goods sold (see above) 145,000 Gross margin 135,000 Operating costs Marketing, distribution, and customer service costs $37,000 Utilities 17,000 General and administrative costs 43,000 Miscellaneous costs 4,000 Total operating costs 101,000 Operating income $ 34,000 2-2 2-30Cost of goods purchased, cost of goods sold, and income statement. 1a. Montgomery Retail Outlet Stores Schedule of Cost of Goods Purchased For the Year Ended December 31, 2011 (in thousands) Purchases $260,000 Add freightin 10,000 270,000 Deduct: Purchase returns and allowances $11,000 Purchase discounts 9,000 20,000 Cost of goods purchased $250,000 1b. Montgomery Retail Outlet Stores Schedule of Cost of Goods Sold For the Year Ended December 31, 2011 (in thousands) Beginning merchandise inventory 1/1/2011 $ 45,000 Cost of goods purchased (see above) 250,000 Cost of goods available for sale 295,000 Ending merchandise inventory 12/31/2011...
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This note was uploaded on 03/14/2012 for the course ACCT 306 taught by Professor Donkovacic during the Spring '12 term at CSU San Marcos.

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Acct306 Homework Ch02 - 2-1 CHAPTER 2 AN INTRODUCTION TO...

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