University:
Kentucky State University
Course:
ECO 301 | Microeconomics
Academic year:

2024
Views:

169

Pages:

5
Author:

amilicaslcw

2-16 Learning Objective 3 Prepare an income statement including calculation of the cost of goods sold. . 2-17 The Income Statement Cost of goods sold for manufacturers differs only slightly from cost of goods sold for merchandisers. Merchandising C ompany Cost of goods sold: Be g. m e rcha ndise inve ntory + Purcha se s Goods a va ila ble for sa le - Ending m e rcha ndise inve ntory = Cost of goods sold $ 14,200 234,150 $ 248,350 (12,100) $ 236,250 Manufacturing Company Cost of goods sold: Beg. finished goods inv. + Cost of goods manufactured Goods available for sale - Ending finished goods inventory = Cost of goods sold . $ 14,200 234,150 $248,350 (12,100) $236,250 2-18 Basic Equation for Inventory Accounts Beginning balance + Additions to inventory = Ending balance + . Withdrawals from inventory 2-19 Quick Check ✓ If your inventory balance at the beginning of the month was $1,000, you bought $100 during the month, and sold $300 during the month, what would be the balance at the end of the month? A. $1,000. B. $ 800. C. $1,200. D. $ 200. . 2-20 Quick Check ✓ If your inventory balance at the beginning of the month was $1,000, you bought $100 during the month, and sold $300 during the month, what would be the balance at the end of the month? A. $1,000. $1,000 + $100 = $1,100 B. $ 800. $1,100 - $300 = $800 C. $1,200. D. $ 200. .