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    lsd's Avatar
    lsd Posts: 1, Reputation: 1
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    #1

    Mar 24, 2008, 06:57 AM
    Cost of goods available for sale & Purchases
    Beginning Inventory $20,000
    Purchases
    Purchase R & A $5,000
    Frt In $8,000
    Cost of Goods Sold $233,000
    Sales $290.00
    Sales Return $11000
    Ending Inventor
    Gross profit on Sale 446,000

    Stumped on how to find Net Purchases and Cost of Goods Available for sale. I am trying to figure this problem out to be able to do with another problem and I am stumped on the equation to finding missing numbers.

    Linda DeWolf
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Mar 24, 2008, 03:52 PM
    Beginning Inventory + Net Purchases = Goods Available For Use
    COGS = Goods Available For Use – Ending Inventory


    Net Purchases = Purchases + Freight In – Discounts (like purchase returns and allowances)
    shlumiel's Avatar
    shlumiel Posts: 1, Reputation: 1
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    #3

    Jul 9, 2012, 03:06 AM
    where are the sales in this equation?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #4

    Jul 9, 2012, 06:28 AM
    Sales have nothing to do with purchases or Cost of Goods available for sale.
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