The following data are for Murray Department Store. The account balances (in tho

Question

The following data are for Murray Department Store. The account balances (in thousands) are for 2014. (Click the icon to view the account balances.) Requirements 1. Compute (a) the cost of goods purchased and (b) the cost of goods sold. 2.Prepare the income statement for 2014. Requirement 1. Compute (a) the cost of goods purchased and (b) the cost of goods sold. (a) Calculate the cost of goods purchased by completing the schedule. (Leave any unused cells blank.) Murray Department Store Schedule of Cost of Goods Purchased For the Year Ended December 31, 2014 (in thousands) Add Deduct Cost of goods purchased

Explanation / Answer

Answer =A) SCHEDULE OF COST OF GOODS PURCHASED Purchases   $    1,50,000.00 Add: Transportation in   $               5,000.00 $          5,000.00 Deduct: Purchase returns and allolwance $               3,000.00 Purchase Discounts $               7,000.00 $       10,000.00 Cost of Goods Purhcased $    1,45,000.00 Answer = B) Cost of Goods Sold = OpeninigStock + Purhcases - Clsoing   Stock Opening Stock =                 25,000.00 Add: Cost of Goods Purchases             1,45,000.00 Less: Closing Stock                 33,000.00 Cost of Goods Sold =             1,37,000.00 Answer = C INCOME STATEMENT FOR 2014 Revenues   $         3,20,000.00 Less: Cost of Goods Sold   $         1,37,000.00 Gross Revenue   $    1,83,000.00 Less: Operating Expenses Utilities $            10,000.00 Marketing Distribution and customer service $            34,000.00 General and administrative Tools $            48,000.00 Miscllaneous Cost                   4,000.00 $       96,000.00 Net Revenue $       87,000.00

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