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Computing periodic inventory amounts

1. Supply the missing amounts in the preceeding table.

Company Net Beg Net Ending COGS Gross
Sale Inventory Purchase Inventory Profit

1.Red 102,000 20,000 61,000 17000 (a) 38000

2. Yellow (b) 25000 94000 (c) 96000 41,000

3. Pink 91000 (d) 53000 24000 62000 (e)

4 Green 85000 11000 (f) 5000 (g) 47000

2. Prepare the income statement for the Company. Which uses the periodic inventory? Show the full computation of cost of goods sold. The company expenses for the year were $ 14,000.

Solution Preview

1. Table showing COGS and Gross profit.

Company Net Beg Net Ending COGS Gross
Sale Inventory Purchase Inventory Profit

1.Red 102,000 20,000 61,000 17000 64000 38000

2. Yellow 137000 25000 94000 23000 96000 41,000

3. Pink 91000 33000 ...

Solution Summary

The expert computes periodic inventory amounts. The income statement for a company is prepared.

$2.19