Question

The following amounts were obtained from the accounting records of Steed Company:

Required:

Compute the missing amounts.

	2017	2018	2019
Beginning inventory	$9,600
Net purchases		71,300	58,100
Ending inventory	11,200		13,750
Cost of goods sold	44,500	49,800

Answer 1

We know that

Cost of goods sold = Beginning inventory + purchases - Ending inventory

For the year 2017; purchases = 44,500+11,200- 9600

Net purchases = $ 46,100

The ending inventory for the year 2017 is the beginning inventory for the year 2018.

Beginning inventory for the year 2018 = 11,200

Cost of goods sold = beginning inventory + purchases - Ending inventory

Ending inventory = 11,200+ 71,300- 49,800

Ending inventory for the year 2018 = 32,700

Beginning inventory for the year 2019 = 32,700

Cost of goods sold for the year 2019 = 32,700+58,100-13,750

= 77,050

	2017	2018	2019
Beginning inventory	$ 9,600	$ 44,500	$ 32,700
Net purchases	46,100	71,300	58,100
Ending inventory	11,200	32,700	13,750
COGS	44,500	49,800	77,050