Respuesta :
Answer:
To calculate the cost of goods sold (COGS) and ending inventory using the periodic inventory system, we need to analyze the transactions and events that occurred in March.
1. March 3: Purchased 1200 backpacks at $70 each from Makka Company, terms 5/10, n/120.
This transaction represents an increase in inventory. The cost of the backpacks is calculated as follows:
Cost per backpack = $70
Total cost = 1200 backpacks * $70 = $84,000
2. March 6: Received credit of $700 for the return of 10 backpacks purchased on March 3 that were defective.
This transaction reduces the inventory and decreases the cost of goods sold.
Cost per backpack = $70
Cost of returned backpacks = 10 backpacks * $70 = $700
3. March 9: Sold 250 backpacks for $200 each to Ghazala Books, terms 2/10, n/30.
This transaction represents a decrease in inventory and generates revenue.
Revenue per backpack = $200
Total revenue = 250 backpacks * $200 = $50,000
4. March 13: Paid Makka Company in full.
This transaction represents a decrease in accounts payable.
Payment = $84,000
5. March 19: Received payments from Ghazala Books.
This transaction represents a decrease in accounts receivable.
Payment = $50,000
Now let's calculate the COGS and ending inventory:
Beginning inventory = $84,000 (assuming there was no beginning inventory mentioned)
COGS = Beginning inventory + Purchases - Ending inventory
Ending inventory = Beginning inventory + Purchases - COGS
Beginning inventory = $84,000
Purchases = $84,000 (from March 3)
COGS = ?
Ending inventory = ?
COGS = Beginning inventory + Purchases - Ending inventory
COGS = $84,000 + $84,000 - Ending inventory
To calculate the ending inventory, we need to determine the number of backpacks remaining after the sales and returns.
Backpacks on hand after the sale to Ghazala Books = Beginning inventory + Purchases - Sales - Returns
Backpacks on hand after the sale to Ghazala Books = 1200 - 250 - 10 = 940 backpacks
Ending inventory = Backpacks on hand after the sale to Ghazala Books * Cost per backpack
Ending inventory = 940 backpacks * $70 = $65,800
Now, let's calculate the COGS:
COGS = Beginning inventory + Purchases - Ending inventory
COGS = $84,000 + $84,000 - $65,800
COGS = $102,200
Therefore, the cost of goods sold (COGS) for March is $102,200, and the ending inventory is $65,800.
Explanation:
To calculate the cost of goods sold (COGS) and ending inventory using the periodic inventory system, we need to analyze the transactions and events that occurred in March.
1. March 3: Purchased 1200 backpacks at $70 each from Makka Company, terms 5/10, n/120.
This transaction represents an increase in inventory. The cost of the backpacks is calculated as follows:
Cost per backpack = $70
Total cost = 1200 backpacks * $70 = $84,000
2. March 6: Received credit of $700 for the return of 10 backpacks purchased on March 3 that were defective.
This transaction reduces the inventory and decreases the cost of goods sold.
Cost per backpack = $70
Cost of returned backpacks = 10 backpacks * $70 = $700
3. March 9: Sold 250 backpacks for $200 each to Ghazala Books, terms 2/10, n/30.
This transaction represents a decrease in inventory and generates revenue.
Revenue per backpack = $200
Total revenue = 250 backpacks * $200 = $50,000
4. March 13: Paid Makka Company in full.
This transaction represents a decrease in accounts payable.
Payment = $84,000
5. March 19: Received payments from Ghazala Books.
This transaction represents a decrease in accounts receivable.
Payment = $50,000
Now let's calculate the COGS and ending inventory:
Beginning inventory = $84,000 (assuming there was no beginning inventory mentioned)
COGS = Beginning inventory + Purchases - Ending inventory
Ending inventory = Beginning inventory + Purchases - COGS
Beginning inventory = $84,000
Purchases = $84,000 (from March 3)
COGS = ?
Ending inventory = ?
COGS = Beginning inventory + Purchases - Ending inventory
COGS = $84,000 + $84,000 - Ending inventory
To calculate the ending inventory, we need to determine the number of backpacks remaining after the sales and returns.
Backpacks on hand after the sale to Ghazala Books = Beginning inventory + Purchases - Sales - Returns
Backpacks on hand after the sale to Ghazala Books = 1200 - 250 - 10 = 940 backpacks
Ending inventory = Backpacks on hand after the sale to Ghazala Books * Cost per backpack
Ending inventory = 940 backpacks * $70 = $65,800
Now, let's calculate the COGS:
COGS = Beginning inventory + Purchases - Ending inventory
COGS = $84,000 + $84,000 - $65,800
COGS = $102,200
Therefore, the cost of goods sold (COGS) for March is $102,200, and the ending inventory is $65,800.
