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
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
Correct!
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
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.
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
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.
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.
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
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
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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