### Skysong, Inc. Cost of Goods Sold (COGS) Section for Year Ending August 31, 2022#### Trial Balance Overview:For the fiscal year ending August 31, 2022, Skysong, Inc. has the following accounts:- **Beginning Inventory**: $23,300- **Purchases**: $186,330- **Sales Revenue**: $192,400- **Freight-In**: $7,890- **Sales Returns and Allowances**: $5,370- **Freight-Out**: $3,100- **Purchase Returns and Allowances**: $7,010- **Ending Inventory**: $22,000#### Task:Prepare a cost of goods sold section using the periodic system for the year ending August 31, 2022.#### Income Statement:- **Purchases**: - Purchase Amount: $186,330 - Add: Freight-In: $7,890 - Less: Purchase Returns and Allowances: $7,010 - **Net Purchases**: Result calculated from (Purchases + Freight-In - Purchase Returns)- **Inventory Calculations**: - **Beginning Inventory**: $23,300 - **Ending Inventory**: $22,000#### COGS Formula:The cost of goods sold can be calculated as follows:\[ \text{COGS} = (\text{Beginning Inventory} + \text{Net Purchases}) - \text{Ending Inventory} \]This cost of goods sold calculation will provide the value of inventory that was sold over the year, important for understanding the expense related to inventory for Skysong, Inc.

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Description: ### Skysong, Inc. Cost of Goods Sold (COGS) Section for Year Ending August 31, 2022#### Trial Balance Overview:For the fiscal year ending August 31, 2022, Skysong, Inc. has the following accounts:- **Beginning Inventory**: $23,300- **Purchases**: $1

Cost of goods sold = Beginning inventory + Net Purchases - Ending inventory

Business

Accounting

The trial balance of Skysong Inc at the end of its fiscal year, August 31, 2022, indudes these accounts: Beginning Inventory $23,300; Purchases $186,330; Sales Revenue S192,400; Freight-In $7,.890; Sales Returns and Allowances $5,370; Freight-Out $3.100; and Purchase Returns and Allowances $7,010. The ending inventory is $22,000. Prepare a cost of goods sold section (periodic system) for the year ending August 31, 2022. Skysong, Inc. Income Statement For the Year Ended August 31. 2022 %24 > > > >

The trial balance of Skysong Inc at the end of its fiscal year, August 31, 2022, indudes these accounts: Beginning Inventory $23,300; Purchases $186,330; Sales Revenue S192,400; Freight-In $7,.890; Sales Returns and Allowances $5,370; Freight-Out $3.100; and Purchase Returns and Allowances $7,010. The ending inventory is $22,000. Prepare a cost of goods sold section (periodic system) for the year ending August 31, 2022. Skysong, Inc. Income Statement For the Year Ended August 31. 2022 %24 > > > >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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