The following are selected data for the Young Company:
Administrative expenses$ 920
Beginning inventory1,140
Net sales10,050
Net income3,130
Ending inventory1,180
Sales returns1,180
Total operating expenses1,380
Purchases5,600
Required:Compute the following:
a.Salesb.Purchase returnsc.Selling expensesd.Cost of goods sold
What will be an ideal response?
Note: Solve in the following order: a, c, d, b.??
| a. | $11,230 (Net sales $10,050 + Sales returns $1,180) |
| b. | $20 (Net purchases = COGS $5,540 - BI $1,140 + EI $1,180 = $5,580; Purchase returns = Purchases $5,600 - Net purchases $5,580 = $20) |
| c. | $460 (Total operating expenses $1,380 - Administrative expenses $920) |
| d. | $5,540 (Gross profit = Net income $3,130 + Total operating expenses $1,380 = $4,510; Net sales = Sales $11,230 - Sales returns $1,180 = $10,050; COGS = Net sales $10,050 - Gross profit $4,510 = $5,540) |
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