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    deezerdoo's Avatar
    deezerdoo Posts: 34, Reputation: 2
    Junior Member
    		  
    #1

    Apr 23, 2007, 09:37 AM
    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
    Smith21000's Avatar
    Smith21000 Posts: 69, Reputation: 9
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    #2

    Apr 23, 2007, 01:50 PM
    Correct!
    deezerdoo's Avatar
    deezerdoo Posts: 34, Reputation: 2
    Junior Member
    		  
    #3

    Apr 24, 2007, 09:09 AM
    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
    Smith21000's Avatar
    Smith21000 Posts: 69, Reputation: 9
    Junior Member
    		  
    #4

    Apr 24, 2007, 09:22 AM
    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.
    deezerdoo's Avatar
    deezerdoo Posts: 34, Reputation: 2
    Junior Member
    		  
    #5

    Apr 24, 2007, 09:25 AM
    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
    Smith21000's Avatar
    Smith21000 Posts: 69, Reputation: 9
    Junior Member
    		  
    #6

    Apr 24, 2007, 10:33 AM
    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.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #7

    Apr 24, 2007, 09:02 PM
    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.
    deezerdoo's Avatar
    deezerdoo Posts: 34, Reputation: 2
    Junior Member
    		  
    #8

    Apr 25, 2007, 05:45 AM
    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
    Superfly999's Avatar
    Superfly999 Posts: 235, Reputation: 14
    Full Member
    		  
    #9

    Apr 25, 2007, 07:18 AM
    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
    deezerdoo's Avatar
    deezerdoo Posts: 34, Reputation: 2
    Junior Member
    		  
    #10

    Apr 25, 2007, 08:01 AM
    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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