Based on the preceding information, determine: Net purchases , Cost of goods sold and Estimated ending inventory as of December 31.
The following information were obtained from Company X’s accounting records:
Sales for the 11 months ended November 30 3,400,000
Sales for the year ended December 31 3,840,000
Purchases for 11 months ended November 30 2,700,000
Purchases for year ended December 31 3,200,000
Inventory, January 1 350,000
Inventory, November 30 (per physical count) 380,000
Additionally, the following were noted:
Shipments received in unsalable condition and excluded from physical inventory:
Total at November 30 4,000
Total at December 31 (incl. Nov. 30 Unrecorded returns) 6,000
The returns were not recorded because no credit memos were received from vendors.
Deposit made with vendor and charged to Purchases in October. The goods were shipped in January of the current year. 8,000
Deposit made with vendor and charged to Purchases in November. The goods were shipped FOB destination on November 29 and were included in the physical inventory as goods in transit. 22,000
Shipments received in November and included in the physical count at November 30 but recorded as December purchases. 30,000
Due to the carelessness of the receiving department, a December shipment was damaged by rain. These goods were later sold at cost in December. 40,000
Based on the preceding information, determine: Net purchases , Cost of goods sold and Estimated ending inventory as of December 31.
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