Exercises- Ch 5 and 6 solutions

# Exercises- Ch 5 and 6 solutions - MERCHANDISING OPERATIONS...

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MERCHANDISING OPERATIONS AND MERCHANDISE INVENTORY EXERCISES Table 1 Sales revenue TL 750,000 Freight in(FI) 44,000 Beginning inventory(BI) 75,000 Purchases discounts(PD) 20,000 Sales returns and allowances 44,000 Operating expenses 99,000 Ending inventory(EI) 72,000 Purchases(P) 415,000 Sales discounts 25,000 William Browning, withdrawals 61,000 Purchase returns and allowances(PRA)36,000 1. Refer to Table 1. The total cost of goods available for sale is: Cost of Goods Available for Sale= BI+P-PRA-PD+FI =75,000+415,000-36,000-20,000+44,000 =478,000 2. Refer to Table 1. The cost of goods sold is: Cost of Goods Sold= BI+P-PRA-PD+FI-EI =406,000 3.Cost of goods sold is TL7,400. Beginning inventory is TL3,500 and ending inventory is TL4,000. If there is no freight in and total purchases were TL8,250, what were purchase returns and allowances? Cost of Goods Sold= BI+P-PRA-PD+FI-EI 7,400=3,500+8,250-PRA-0+0-4,000 PRA=350 Table 2 January 1 inventory balance 100 units at

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## This note was uploaded on 03/16/2012 for the course FENS 101 taught by Professor Selçukerdem during the Fall '12 term at Sabancı University.

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Exercises- Ch 5 and 6 solutions - MERCHANDISING OPERATIONS...

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