Question

# class practice 4 (chapter 5) The income statement of Jeter Company includes the items listed below:...

class practice 4 (chapter 5)

The income statement of Jeter Company includes the items listed below:

Sales \$890,000

Gross profit 396,000

I have the answers just need the work to understand

Beginning inventory 35,000

Sales discounts 16,000

Purchase discounts 7,000

Sales returns and allowances 11,000

Purchase returns and allowances 9,000

Freight-in 13,000

Operating expenses 120,000

Purchases 480,000

Instructions

Using the information above, compute the following:

(a) Cost of goods sold. 467,000

(b) Cost of goods available for sale. 512,000

(c) Ending inventory. 45,000

 Beginning inventory 35000 Purchase 480000 Less: Purchase discount -7000 Less: Purchase return and allowance -9000 Net purchase 464000 Add: Freight in 13000 Cost of purchase 477000 Cost of goods available for sale 512000 Cost of goods sold (890000-11000-16000-396000) -467000 Ending inventory 45000

So answer is :

(a) Cost of goods sold. 467,000

(b) Cost of goods available for sale. 512,000

(c) Ending inventory. 45,000

#### Earn Coins

Coins can be redeemed for fabulous gifts.