Computing cost of goods sold, merchandising companyUse the following information for The Windshield Helper, a retail merchandiser of auto windshields, to compute the cost of goods sold: Web Site Maintenance$ 7,900Delivery Expense400Freight In2,400Purchases47,000Ending Merchandise Inventory5,500Revenues63,000Marketing Expenses10,700Beginning Merchandise Inventory8,600

Cost of goods sold = Beginning inventory + Purchases + Freight in - Ending inventory

Answered: Web Site Maintenance $ 7,900 Delivery…

Web Site Maintenance $ 7,900 Delivery Expense 400 Freight In 2,400 Purchases 47,000 Ending Merchandise Inventory 5,500 Revenues 63,000 Marketing Expenses 10,700 Beginning Merchandise Inventory 8,600

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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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

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Computing cost of goods sold, merchandising company

Use the following information for The Windshield Helper, a retail merchandiser of auto windshields, to compute the cost of goods sold:

Web Site Maintenance
$ 7,900
Delivery Expense
400
Freight In
2,400
Purchases
47,000
Ending Merchandise Inventory
5,500
Revenues
63,000
Marketing Expenses
10,700
Beginning Merchandise Inventory
8,600

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