Get expert advice and community support on IDNLearn.com. Get the information you need from our community of experts who provide accurate and thorough answers to all your questions.
Sagot :
Sure, let's solve the problem step by step.
First, we should understand each term:
1. Invoice Cost of Merchandise Purchases: The total cost on the invoice before any discounts or returns.
2. Purchase Discounts: Discounts received from suppliers for early payment or bulk purchases.
3. Purchase Returns and Allowances: The returns made by the company to its suppliers.
4. Cost of Transportation-In: The cost associated with transporting the merchandise to the company.
5. Merchandise Inventory (Beginning and End of Period): The value of the inventory at the beginning and end of the accounting period, respectively.
6. Net Cost of Merchandise Purchases: Calculated as the Invoice Cost + Transportation-In - (Purchase Discounts + Purchase Returns and Allowances).
7. Cost of Goods Sold (COGS): Calculated as the sum of the beginning inventory and net purchases minus the ending inventory.
Let's calculate:
1. For Invoice A:
- [tex]\( \text{Invoice Cost} = \$43,600 \)[/tex]
- [tex]\( \text{Purchase Discounts} = \$1,600 \)[/tex]
- [tex]\( \text{Purchase Returns and Allowances} = \$1,300 \)[/tex]
- [tex]\( \text{Net Cost of Merchandise Purchases} = \$44,300 \)[/tex]
- [tex]\( \text{Beginning Inventory} = \$4,100 \)[/tex]
- [tex]\( \text{Ending Inventory} = \$2,000 \)[/tex]
- Unknown: [tex]\( \text{Cost of Transportation-In} \)[/tex]
To find this:
[tex]\[ \text{Net Cost of Merchandise Purchases} = \text{Invoice Cost} - \text{Purchase Discounts} - \text{Purchase Returns and Allowances} + \text{Cost of Transportation-In} \][/tex]
[tex]\[ 44,300 = 43,600 - 1,600 - 1,300 + \text{Transportation-In} \][/tex]
[tex]\[ 44,300 = 40,700 + \text{Transportation-In} \][/tex]
[tex]\[ \text{Transportation-In} = 44,300 - 40,700 = 3,600 \][/tex]
2. For Invoice B:
- [tex]\( \text{Invoice Cost} = \$20,600 \)[/tex]
- [tex]\( \text{Purchase Returns and Allowances} = \$710 \)[/tex]
- [tex]\( \text{Net Cost of Merchandise Purchases} = \$19,550 \)[/tex]
- [tex]\( \text{Cost of Transportation-In} = \$1,550 \)[/tex]
- [tex]\( \text{Ending Inventory} = \$3,550 \)[/tex]
- [tex]\( \text{Cost of Goods Sold} = \$20,400 \)[/tex]
- Unknown: [tex]\( I \)[/tex] and [tex]\( \text{Beginning Inventory} \)[/tex]
To find [tex]\( I \)[/tex]:
[tex]\[ \text{Net Cost of Merchandise Purchases} = \text{Invoice Cost} - I - \text{Purchase Returns and Allowances} + \text{Cost of Transportation-In} \][/tex]
[tex]\[ 19,550 = 20,600 - I - 710 + 1,550 \][/tex]
[tex]\[ 19,550 = 21,440 - I \][/tex]
[tex]\[ I = 21,440 - 19,550 = 1,890 \][/tex]
Now, to find the beginning inventory:
[tex]\[ \text{COGS} = \text{Beginning Inventory} + \text{Net Cost of Merchandise Purchases} - \text{Ending Inventory} \][/tex]
[tex]\[ 20,400 = \text{Beginning Inventory} + 19,550 - 3,550 \][/tex]
[tex]\[ 20,400 = \text{Beginning Inventory} + 16,000 \][/tex]
[tex]\[ \text{Beginning Inventory} = 20,400 - 16,000 = 4,400 \][/tex]
3. For Invoice C:
- [tex]\( \text{Invoice Cost} = \$15,850 \)[/tex]
- [tex]\( \text{Purchase Discounts} = \$305 \)[/tex]
- [tex]\( \text{Purchase Returns and Allowances} = \$510 \)[/tex]
- [tex]\( \text{Cost of Transportation-In} = \$1,600 \)[/tex]
- [tex]\( \text{Beginning Inventory} = \$3,100 \)[/tex]
- [tex]\( \text{Cost of Goods Sold} = \$16,665 \)[/tex]
- Unknown: [tex]\( \text{Net Cost of Merchandise Purchases} \)[/tex] and [tex]\( \text{Ending Inventory} \)[/tex]
To find [tex]\( \text{Net Cost of Merchandise Purchases} \)[/tex]:
[tex]\[ \text{Net Cost of Merchandise Purchases} = \text{Invoice Cost} - \text{Purchase Discounts} - \text{Purchase Returns and Allowances} + \text{Cost of Transportation-In} \][/tex]
[tex]\[ \text{Net Cost of Merchandise Purchases} = 15,850 - 305 - 510 + 1,600 \][/tex]
[tex]\[ \text{Net Cost of Merchandise Purchases} = 16,635 \][/tex]
Now, to find the ending inventory:
[tex]\[ \text{COGS} = \text{Beginning Inventory} + \text{Net Cost of Merchandise Purchases} - \text{Ending Inventory} \][/tex]
[tex]\[ 16,665 = 3,100 + 16,635 - \text{Ending Inventory} \][/tex]
[tex]\[ 16,665 = 19,735 - \text{Ending Inventory} \][/tex]
[tex]\[ \text{Ending Inventory} = 19,735 - 16,665 = 3,070 \][/tex]
Here are the results in the tabular form:
\begin{tabular}{|c|c|c|c|c|c|c|}
\hline & & a & & b & & c \\
\hline Invoice cost of merchandise purchases & \[tex]$ & 43,600 & \$[/tex] & 20,600 & \[tex]$ & 15,850 \\ \hline Purchase discounts & & 1,600 & & 1,890 & & +305 \\ \hline Purchase returns and allowances & & 1,300 & & 710 & & 510 \\ \hline Cost of transportation-in & & 3,600 & & 1,550 & & 1,600 \\ \hline Merchandise inventory (beginning of period) & & 4,100 & & 4,400 & & 3,100 \\ \hline Net cost of merchandise purchases & & 44,300 & & 19,550 & & 16,635 \\ \hline Merchandise inventory (end of period) & & 2,000 & & 3,550 & & 3,070 \\ \hline Cost of goods sold & & & \$[/tex] & 20,400 & \$ & 16,665 \\
\hline
\end{tabular}
First, we should understand each term:
1. Invoice Cost of Merchandise Purchases: The total cost on the invoice before any discounts or returns.
2. Purchase Discounts: Discounts received from suppliers for early payment or bulk purchases.
3. Purchase Returns and Allowances: The returns made by the company to its suppliers.
4. Cost of Transportation-In: The cost associated with transporting the merchandise to the company.
5. Merchandise Inventory (Beginning and End of Period): The value of the inventory at the beginning and end of the accounting period, respectively.
6. Net Cost of Merchandise Purchases: Calculated as the Invoice Cost + Transportation-In - (Purchase Discounts + Purchase Returns and Allowances).
7. Cost of Goods Sold (COGS): Calculated as the sum of the beginning inventory and net purchases minus the ending inventory.
Let's calculate:
1. For Invoice A:
- [tex]\( \text{Invoice Cost} = \$43,600 \)[/tex]
- [tex]\( \text{Purchase Discounts} = \$1,600 \)[/tex]
- [tex]\( \text{Purchase Returns and Allowances} = \$1,300 \)[/tex]
- [tex]\( \text{Net Cost of Merchandise Purchases} = \$44,300 \)[/tex]
- [tex]\( \text{Beginning Inventory} = \$4,100 \)[/tex]
- [tex]\( \text{Ending Inventory} = \$2,000 \)[/tex]
- Unknown: [tex]\( \text{Cost of Transportation-In} \)[/tex]
To find this:
[tex]\[ \text{Net Cost of Merchandise Purchases} = \text{Invoice Cost} - \text{Purchase Discounts} - \text{Purchase Returns and Allowances} + \text{Cost of Transportation-In} \][/tex]
[tex]\[ 44,300 = 43,600 - 1,600 - 1,300 + \text{Transportation-In} \][/tex]
[tex]\[ 44,300 = 40,700 + \text{Transportation-In} \][/tex]
[tex]\[ \text{Transportation-In} = 44,300 - 40,700 = 3,600 \][/tex]
2. For Invoice B:
- [tex]\( \text{Invoice Cost} = \$20,600 \)[/tex]
- [tex]\( \text{Purchase Returns and Allowances} = \$710 \)[/tex]
- [tex]\( \text{Net Cost of Merchandise Purchases} = \$19,550 \)[/tex]
- [tex]\( \text{Cost of Transportation-In} = \$1,550 \)[/tex]
- [tex]\( \text{Ending Inventory} = \$3,550 \)[/tex]
- [tex]\( \text{Cost of Goods Sold} = \$20,400 \)[/tex]
- Unknown: [tex]\( I \)[/tex] and [tex]\( \text{Beginning Inventory} \)[/tex]
To find [tex]\( I \)[/tex]:
[tex]\[ \text{Net Cost of Merchandise Purchases} = \text{Invoice Cost} - I - \text{Purchase Returns and Allowances} + \text{Cost of Transportation-In} \][/tex]
[tex]\[ 19,550 = 20,600 - I - 710 + 1,550 \][/tex]
[tex]\[ 19,550 = 21,440 - I \][/tex]
[tex]\[ I = 21,440 - 19,550 = 1,890 \][/tex]
Now, to find the beginning inventory:
[tex]\[ \text{COGS} = \text{Beginning Inventory} + \text{Net Cost of Merchandise Purchases} - \text{Ending Inventory} \][/tex]
[tex]\[ 20,400 = \text{Beginning Inventory} + 19,550 - 3,550 \][/tex]
[tex]\[ 20,400 = \text{Beginning Inventory} + 16,000 \][/tex]
[tex]\[ \text{Beginning Inventory} = 20,400 - 16,000 = 4,400 \][/tex]
3. For Invoice C:
- [tex]\( \text{Invoice Cost} = \$15,850 \)[/tex]
- [tex]\( \text{Purchase Discounts} = \$305 \)[/tex]
- [tex]\( \text{Purchase Returns and Allowances} = \$510 \)[/tex]
- [tex]\( \text{Cost of Transportation-In} = \$1,600 \)[/tex]
- [tex]\( \text{Beginning Inventory} = \$3,100 \)[/tex]
- [tex]\( \text{Cost of Goods Sold} = \$16,665 \)[/tex]
- Unknown: [tex]\( \text{Net Cost of Merchandise Purchases} \)[/tex] and [tex]\( \text{Ending Inventory} \)[/tex]
To find [tex]\( \text{Net Cost of Merchandise Purchases} \)[/tex]:
[tex]\[ \text{Net Cost of Merchandise Purchases} = \text{Invoice Cost} - \text{Purchase Discounts} - \text{Purchase Returns and Allowances} + \text{Cost of Transportation-In} \][/tex]
[tex]\[ \text{Net Cost of Merchandise Purchases} = 15,850 - 305 - 510 + 1,600 \][/tex]
[tex]\[ \text{Net Cost of Merchandise Purchases} = 16,635 \][/tex]
Now, to find the ending inventory:
[tex]\[ \text{COGS} = \text{Beginning Inventory} + \text{Net Cost of Merchandise Purchases} - \text{Ending Inventory} \][/tex]
[tex]\[ 16,665 = 3,100 + 16,635 - \text{Ending Inventory} \][/tex]
[tex]\[ 16,665 = 19,735 - \text{Ending Inventory} \][/tex]
[tex]\[ \text{Ending Inventory} = 19,735 - 16,665 = 3,070 \][/tex]
Here are the results in the tabular form:
\begin{tabular}{|c|c|c|c|c|c|c|}
\hline & & a & & b & & c \\
\hline Invoice cost of merchandise purchases & \[tex]$ & 43,600 & \$[/tex] & 20,600 & \[tex]$ & 15,850 \\ \hline Purchase discounts & & 1,600 & & 1,890 & & +305 \\ \hline Purchase returns and allowances & & 1,300 & & 710 & & 510 \\ \hline Cost of transportation-in & & 3,600 & & 1,550 & & 1,600 \\ \hline Merchandise inventory (beginning of period) & & 4,100 & & 4,400 & & 3,100 \\ \hline Net cost of merchandise purchases & & 44,300 & & 19,550 & & 16,635 \\ \hline Merchandise inventory (end of period) & & 2,000 & & 3,550 & & 3,070 \\ \hline Cost of goods sold & & & \$[/tex] & 20,400 & \$ & 16,665 \\
\hline
\end{tabular}
Thank you for joining our conversation. Don't hesitate to return anytime to find answers to your questions. Let's continue sharing knowledge and experiences! Thank you for choosing IDNLearn.com for your queries. We’re committed to providing accurate answers, so visit us again soon.
