WileyPLUS Problem 5-5 Below is a series of cost of goods sold sections for compa

Question

WileyPLUS Problem 5-5 Below is a series of cost of goods sold sections for companies A, F, L, and V. All of these companies use a periodic inventory system. Fill in the lettered blanks to complete the cost of goods sold sections nning inventory $350 $90 $1,120 1,500 1,150 43,920 Purchase returns and allowances Net purchases Freight-in Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold 320 1,040 7,780 41,660 138 2,300 1,260 8,090 1,900 1,350 49,960 6,240 43,720 383 1,520 1,260 7,690

Explanation / Answer

A F L V Beginning Inventory $        350 $          90 $    1,120 $    6,000 Purchases $    1,500 $    1,150 $    8,100 $ 43,920 Purchase Return and allownces $          88 $        110 $        320 $    2,260 Net Purchase $    1,412 $    1,040 $    7,780 $ 41,660 Freight-in $        138 $        220 $        310 $    2,300 Cost of goods purchased $    1,550 $    1,260 $    8,090 $ 43,960 Cost of goods available for sale $    1,900 $    1,350 $    9,210 $ 49,960 Ending Inventory $        383 $          90 $    1,520 $    6,240 Cost of goods sold $    1,517 $    1,260 $    7,690 $ 43,720 Working: A: a. Net Purchase = Purchases - Purchase Return and allownces = $    1,500 - $          88 = $    1,412 b. Cost of goods purchased = Net Purchase + Freight-in = $    1,412 + $        138 = $    1,550 c. Cost of goods sold = Cost of goods available for sale - Ending Inventory = $    1,900 - $        383 = $    1,517 F: a. Purchase Return and allownces = Purchases - Net Purchase = $    1,150 - $    1,040 = $        110 b. Freight-in = Cost of goods purchased - Net Purchase = $    1,260 - $    1,040 = $        220 c. Ending Inventory = Cost of goods available for sale - Cost of goods sold = $    1,350 - $    1,260 = $          90 L: a. Purchases = Purchase Return and allownces + Net Purchase = $        320 + $    7,780 = $    8,100 b. Freight-in = Cost of goods purchased - Net Purchase = $    8,090 - $    7,780 = $        310 c. Cost of goods available for sale = Beginning Inventory + Cost of goods purchased = $    1,120 + $    8,090 = $    9,210 V: a. Purchase Return and allownces = Purchases - Net Purchase = $ 43,920 - $ 41,660 = $    2,260 b. Cost of goods purchased = Net Purchase + Freight-in = $ 41,660 + $    2,300 = $ 43,960 c. Beginning Inventory = Cost of goods available for sale - Cost of goods purchased = $ 49,960 - $ 43,960 = $    6,000

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