Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=19)
-   -   How do I compute the companys total cost of merchandise purchased for the year? (https://www.askmehelpdesk.com/showthread.php?t=641184)

  • Mar 5, 2012, 08:53 AM
    upgirlamn
    How do I compute the companys total cost of merchandise purchased for the year?
    BizKid Company's adjusted trial balance on August 31, 2011, its fiscal year-end, follows.











    Debit





    Credit





    Merchandise inventory



    $

    42,000











    Other (noninventory) assets





    168,000











    Total liabilities









    $

    48,510





    N. Kidman, Capital











    137,550





    N. Kidman, Withdrawals





    8,000











    Sales











    287,280





    Sales discounts





    4,395











    Sales returns and allowances





    18,960











    Cost of goods sold





    110,754











    Sales salaries expense





    39,357











    Rent expense—Selling space





    13,502











    Store supplies expense





    3,447











    Advertising expense





    24,419











    Office salaries expense





    35,910











    Rent expense—Office space





    3,447











    Office supplies expense





    1,149
















    --------------------------------------------------------------------------------



    --------------------------------------------------------------------------------





    --------------------------------------------------------------------------------



    --------------------------------------------------------------------------------






    Totals



    $

    473,340



    $

    473,340










    --------------------------------------------------------------------------------

    --------------------------------------------------------------------------------



    --------------------------------------------------------------------------------

    --------------------------------------------------------------------------------





    --------------------------------------------------------------------------------

    --------------------------------------------------------------------------------



    --------------------------------------------------------------------------------

    --------------------------------------------------------------------------------







    --------------------------------------------------------------------------------







    On August 31, 2010, merchandise inventory was $33,894. Supplementary records of merchandising activities for the year ended August 31, 2011, reveal the following itemized costs.













    Invoice cost of merchandise purchases

    $

    123,480



    Purchase discounts received



    2,593



    Purchase returns and allowances



    5,927



    Costs of transportation-in



    3,900




    --------------------------------------------------------------------------------

  • All times are GMT -7. The time now is 01:56 PM.