E5-15 The trial balance of G. Durler Company at the end of its fiscal year, Augu

Question

E5-15

The trial balance of G. Durler Company at the end of its fiscal year, August 31, 2012, includes these accounts: Merchandise Inventory $17,200; Purchases $149,000; Sales $190,000; Freight-in $4,000; Sales Returns and Allowances $3,000; Freight-out $1,000; and Purchase Returns and Allowances $2,000. The ending merchandise inventory is $25,000.

Instructions

Prepare a cost of goods sold section for the year ending August 31 (periodic inventory).

Inventory, September 1, 2011 $
$
Less:


Net purchases
Add:





Inventory, August 31, 2012



$

Explanation / Answer

Hi, COGS will be calculated with the use of following formula: Opening Stock + Net Purchases + Direct Expenses - Closing Stock 25000 + 147000 (149000 - 2000) + 4000 - 17200 COGS =158800 Thanks, Aman

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