Question

Aug. 2 Sold a bundle of spa services with a merchandise basket. When sold separately, the spa service part of the bundle sells for $476 and the merchandise basket normally sells for $204. Together, the bundle was sold to Val Amy for cash at a selling price of $540 (total). Val booked a spa treatment for August 10, and she took the basket of goods with her. The goods had cost NGS $125. Aug. 3 Sold 5 identical items of merchandise to Cosmetics R Us on account at a selling price of $590 (total); terms n/30. The goods cost NGS $490. Aug. 6 Cosmetics R Us returned one of the five items purchased on August 3. The item could still be sold by NGS in the future and credit was given to the customer. Aug. 10 Val Amy used one of the three spa treatments she had purchased as part of the bundle sold to her on August 2. Aug. 20 Sold two at-home spa kits to Meghan Witzel for $390 cash. The goods cost NGS $141. Aug. 22 Cosmetics R Us paid its remaining account balance in full. 2-a. Calculate the Sales Revenue and Cost of Goods Sold for the transactions listed above (but exclude Service Revenue for spa services)

Answer 1

Ans:

Calculation of Sales Revenue and cost of goods sold:

Aug.2 Bundle sold to val Amy: $540. Assuming discount in bundle relates to spa services and not basket basic sale price.

Normal basket price of goods on bundle: $204

Cost of basket: $125

Aug 3. Goods Sold to cosmetics R Us: 5 Units @ $590 per unit

Cost of Goods $490 per unit.

Aug 6 :Return of 1 unit above

Aug.20 Sold two unit to Meghan witzel: $390 per unit

cost of goods sold: $141 per unit

Sales Revenue excluding service revenue:

=$204+($590*4)+($390*2)

= $3,344

Cost of Goods sold:

=$125+($490*4)+($141*2)

= $2,367