Instructions: Fill in the amounts that are missing.
2013 2014 2015
Sales 217,500 ? 307,500
Sales Returns 8,250 9,750 ?
Net Sales ? 260,250 ?
Beginning Inventory 15,000 24,000 ?
Ending Inventory ? ? ?
Purchases ? 195,000 223,500
Purchase Returns & Allowances 3,750 6,000 7,500
Transportation - in 6,000 6,750 9,000
Cost of Goods Sold 174,750 ? 219,750
Gross Profit 34,500 68,250 72,750
On the basis of given question, we need to find out the missing numbres.
We shall start with year 2014 for our calculations-
Below formulas are used -
1. Gross sales= Net sales + Sales return = 260250+ 9750 = 270000
2. Cost of goods sold = Net sales - Gross profit= 260250- 68250= 192000
3. Ending inventory = Opening inventory + net purchases + transport - Cost of goods sold
where net purchases is purchases - purchase return made= 195000- 6000= 189000
Attached are the miising numbers in yellow for year 2014.
We shall now calculate the 2015 year numbers-
below are the calculations-
Please note the closing inventory for year 2014 will be the opening inventory of year 2015 as per the accounting principles. therefore, opening inventory will 27750 ( the closing balance carried forward of the year 2014)
1. Net sales = Cost of goods sold + Gross profit= 219750+ 72750= 292500
2. Salesreturn = Sales - net sales = 307500- 292500= 15000
3. Ending inventory = Opening inventory + net purchases+ transport- Cost of goods sold,
where net purchase = 223500 purchases less- 7500 purchase retrun= 216000
Using the above calculations, attached the are missing numbers for year 2015 in yellow-
Now we shall calculate the 2013 numbers as follows;
1. Please note the openinh inventory of 2014 was the closing inventory for year 2013, hence it will 24000.
2. Net sales = Sales - Sales return= 217500- 8250= 209250
3. Purchases = Ending inventory + cost of goods sold - opening inventory- transport charges
|Less opening i...|
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