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Junior Member
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Apr 23, 2007, 09:37 AM
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Cost of Goods Sold
Purchases $182,000
Transportation-In $11,000
Inventory, January 1 $26,500
Inventory, December 31 $28,800
Purchase Returns and Allowances $8,400
The amount reported as cost of goods sold on the income statement is?
I say 182,300
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Junior Member
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Apr 23, 2007, 01:50 PM
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Correct!
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Junior Member
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Apr 24, 2007, 09:09 AM
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I agree that I am correct the problem is my instructor has told me I am wrong and I can't figure out why the other choices I have for question are
$190,700
$186,900
$179,900
Do you have any suggestions as to what I might be missing here is how I worked it out.
Iventory January 1 $26,500
Purchases $182,000
Less: Purchase Returns
And Allowances $8,400
Net Purchases $173,600
Add: Transportation-In $11,000
Cost of goods purchased $184,600
Cost of goods available for sale $211,100
Less: Inventory, December 31 $28,800
Cost of Goods Sold $182,300
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Junior Member
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Apr 24, 2007, 09:22 AM
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Could you state the question exactley as it was given to you, maybe it's a terminology issue or missed type a number. Otherwise I still stand by COGS of $182,300.
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Junior Member
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Apr 24, 2007, 09:25 AM
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Use the following information for question 24.
Purchases $182,000
Transportation-In $11,000
Inventory, January 1 $26,500
Inventory, December 31 $28,800
Purchase Returns and Allowances $8,400
24. The amount reported as cost of goods sold on the income statement is?
A. $190,700 C. $182,300
B. $186,900 D. $179,900
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Junior Member
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Apr 24, 2007, 10:33 AM
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I stand by 182,300 as COGS. Please let me know what your instructor says is the right answer and ask him or her why.
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Ultra Member
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Apr 24, 2007, 09:02 PM
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I'm with Smith on this. 182,300 is the correct answer.
I too am curious as to what your instructor says is the correct answer and why.
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Junior Member
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Apr 25, 2007, 05:45 AM
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My instructor says the answer is $190,700 I have e-mailed him and asked him to explain I should get a response back in the next day or so and will post what he says
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Full Member
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Apr 25, 2007, 07:18 AM
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Apparently he didn't add the purchase return and allowance what so ever. Don't understand why he wouldn't though I'm curious also so I'll stick around to see why too :D
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Junior Member
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Apr 25, 2007, 08:01 AM
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My Instructor wrote:
In response to your email, your answer is correct. The wrong
Answer was incorrectly posted when the grading key was input. I changed
Your original grade from an 88% to a 92%. Sorry for the
Error and the waste of your time.
Thank you so much for confirming my answer. I probably would not have had the confidence to challenge this without you guys confirming it for me. Thanks again this site has helped get a better understanding of accounting and has also given me confidence. I wonder how many other people have received a lower grade on this and did not know it. Thanks again.
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