Chapter 6: Q27E-1 (page 366)

Consider the data of the following companies which use the periodic inventory system:
Company
Net Sales Revenue
Beginning Merchandise Inventory
Net Cost of Purchases
Ending Merchandise Inventory
Cost of Goods Sold
Gross Profit
Large
$ 105,000
$ 23,000
$ 59,000
$ 22,000
(a)
$45,000
Small
(b)
27,000
94,000
(c)
99,000
40,000
Medium
96,000
(d)
58,000
24,000
68,000
(e)
Petite
80,000
8,000
(f)
6,500
(g)
44,000
Requirements
1. Supply the missing amounts in the preceding table.

Short Answer

Expert verified

a) $60,000

b) $139,000

c) $22,000

d) $34,000

e) $28,000

f) $34,500

g) $36,000

Step by step solution

Missing Value (a)

$\begin{matrix} (a) C O G S = N e t S a l e s R e v e n u e - G r o s s P r o f i t \\ = $ 105, 000 - $ 45, 000 \\ = $ 60, 000 \end{matrix}$

Missing Value (b)

$\begin{matrix} (b) N e t s a l e s r e v e n u e = C O G S + G r o s s P r o f i t \\ = $ 99, 000 - $ 40, 000 \\ = $ 139, 000 \end{matrix}$

Missing Value (c)

\begin{array}{rcl} (c) E n d i n g I n e v n t o r y & = & B e g i n n i n g I n v e n t o r y + N e t P u r c h a s e - C O G S \\ = & $ 27, 000 + $ 94, 000 - $ 99, 000 \\ = & $ 22, 000 \end{array}

Missing Value (d)

$\begin{matrix} (d) B e g i n n i n g I n e v n t o r y = C O G S + E n d i n g I n v e n t o r y - N e t P u r c h a s e s \\ = $ 68, 000 + $ 24, 000 - $ 58, 000 \\ = $ 34, 000 \end{matrix}$

Missing Value (e)

$\begin{matrix} (e) G r o s s P r o f i t = N e t S a l e s R e v e n u e - C O G S \\ = $ 96, 000 - $ 68, 000 \\ = $ 28, 000 \end{matrix}$

Missing Value (f)

\begin{array}{rcl} (f) N e t P u r c h a s e s & = & C O G S + E n d i n g I n v e n t o r y - B e g i n n i n g I n e v n t o r y \\ = & $ 36, 000 + $ 6, 500 - $ 8, 000 \\ = & $ 34, 500 \end{array}

Missing Value (g)

$\begin{matrix} (g) C O G S = N e t S a l e s R e v e n u e - G r o s s P r o f i t \\ = $ 80, 000 - $ 44, 000 \\ = $ 36, 000 \end{matrix}$

Unlock Step-by-Step Solutions & Ace Your Exams!

Full Textbook Solutions
Get detailed explanations and key concepts
Unlimited Al creation
Al flashcards, explanations, exams and more...
Ads-free access
To over 500 millions flashcards
Money-back guarantee
We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

Recommended explanations on Business Studies Textbooks

View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

	2019	2018	2017
Net Sales Revenue	\( 212,000	\) 161,000	\( 170,000
Cost of Goods Sold:
Beginning Merchandise Inventory	\)22,000	\(28,000	\)41,000
Net cost of purchase	131,000	100,000	86,000
Cost of goods available for sale	153,000	128,000	127,000
Less: Ending Merchandise Inventory	34,000	22,000	28,000
Cost of goods sold	119,000	106,000	99,000
Gross Profit	93,000	55,000	71,000
Operating Expenses	63,000	28,000	39,000
Net Income	\( 30,000	\) 27,000	$ 32,000

Short Answer

Step by step solution

Missing Value (a)

Missing Value (b)

Missing Value (c)

Missing Value (d)

Missing Value (e)

Missing Value (f)

Missing Value (g)

One App. One Place for Learning.

Most popular questions from this chapter

Recommended explanations on Business Studies Textbooks

Operational Management

Introduction to Business

Strategic Direction

Organizational Behavior

Business Operations

Change Management

Study anywhere. Anytime. Across all devices.

Company	Net Sales Revenue	Beginning Merchandise Inventory	Net Cost of Purchases	Ending Merchandise Inventory	Cost of Goods Sold	Gross Profit
Large	\( 105,000	\) 23,000	\( 59,000	\) 22,000	(a)	$45,000
Small	(b)	27,000	94,000	(c)	99,000	40,000
Medium	96,000	(d)	58,000	24,000	68,000	(e)
Petite	80,000	8,000	(f)	6,500	(g)	44,000