Westonci.ca offers fast, accurate answers to your questions. Join our community and get the insights you need now. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.
Sagot :
Answer:
Cost of goods sold = $105,060
Explanation:
a) Data and Calculations:
Cost of goods sold section of the multi-step income statement:
Merchandise Inventory, January 1, 20-- $37,000
Purchases 102,000
Purchases Returns and Allowances (4,200)
Purchases Discounts (2,040)
Freight-In 800
Merchandise Inventory, December 31, 20--(28,500)
Cost of goods sold $105,060
b) The cost of goods sold comprises the beginning inventory, purchases and freight-in costs incurred during the period, less purchases returns and discounts, and the ending inventory. It represents the cost incurred directly for the goods sold. This means that indirect costs are not included in the cost of goods sold. Such costs are usually deducted as period costs before arriving at the net income.
We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.