Chapter 5, Problem 5.40EX

Identify items missing in determining cost of goods sold

For (A) through (E), identify the items designated by X and Y.

A. Purchases − (X + Y) = Net purchases

B. Net purchases + X = Cost of inventory purchased

C. Inventory (beginning) + Cost of inventory purchased = X

D. Inventory available for sale − X = Cost of inventory before estimated returns

E. Cost of goods sold before estimated returns − X = Cost of goods sold