Cost of finished goods availat 6. Finished goods inventory 10/3 2-37 Cost of goo
ID: 2335931 • Letter: C
Question
Cost of finished goods availat 6. Finished goods inventory 10/3 2-37 Cost of goods manufactur account balances (in thousands) f untingLab Problems 2-34 Computing cost of goods purchased and cost of goods sold. The following data are for Mavie Department Store. The account balances (in thousands) are for 2017 Marketing, distribution, and customer-service costs Merchandise inventory, January 1, 2017 Utilities General and administrative costs Merchandise inventory, December 31, 2017 Purchases Miscellaneous costs Transportation-in Purchase returns and allowances Purchase discounts Revenues Peterson Company S 37,000 27,000 17,000 43,000 4,000 155,000 Direct materials invent Work-in-process inven Finished-goods invento Purchases of direct m Direct manufacturing Indirect manufacturin Plant insurance 7,000 ,000 6,000 280,000 Depreciation-plant Repairs and maintens Marketing, distrioubo General and administ ed1. Compute (a) the cost of goods purchased and (Ib) the cost of goods sold 1. Prepare a schedule for the 2. Revenues for 2017 were $3 2. Prepare the income statement for 2017
Explanation / Answer
1 (a) Computation of cost of goods purchased: Purchases $ 1,55,000 Add: Transportation in $ 7,000 Less: Purchase return and allowances $ 4,000 Less: Purchase discounts $ 6,000 Cost of goods purchased $ 1,52,000 (b) Computation of cost of goods sold: Beginning Inventory,January 1,2017 $ 27,000 Add: Cost of goods purchased $ 1,52,000 Cost of goods available for sale $ 1,79,000 Less: Ending Inventory, December 31, 2017 $ 34,000 Cost of goods sold $ 1,45,000 2 Marvin department store Income Statement For the month ended December 31, 2017 Revenues $ 2,80,000 Less: Cost of goods sold $ 1,45,000 Gross margin $ 1,35,000 Less: Operating cost Marketing distribution and customer service cost $ 37,000 Utilities $ 17,000 General and administrative cost $ 43,000 Miscellaneous cost $ 4,000 Total operating cost $ 1,01,000 Operating Income $ 34,000