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E 8-5 Playa Company periodic inventory. Missing amounts.

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The Playa Company uses a periodic inventory system. The following information is taken from Playa's records. Certain data been intentionally omitted ($ in thousands)

2011 2012 2013

Beginning inventory ? ? 225
Cost of goods sold 627 621 ?
Ending inventory ? 225 ?
Cost of goods available for sale 876 ? 800
Purchases (gross) 630 ? 585
Purchase discounts 18 15 ?
Purchase returns 24 30 14
Freight-in 13 32 16

1. Determine the missing numbers. Show computation where appropriate.

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Solution Summary

The computations are in yellow cells in Excel (click in cells to see computations). I have arranged the data in the format that matches the three equations given so that you can "see" how to solve for the missing piece with a bit of algebra.

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You were missing one item from the problem ending inventory in ...

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Carol Sargent, PhD
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  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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