Question

The trial balance of G. Durler Company at the end of its fiscal year, August 31, 2008, includes these account: Merchandise Inventory $17,200; Purchases $149,000; Sales $190,000; Freight-in $4,000; Sales Returns and Allowances $3,000; Freight-out $1,000; and Purchases Returns and Allowances $2,000. The ending merchandise inventory is $25,000.
Prepare a cost of goods sold section for the year ending August 31 (periodic inventory).

Answer 1

Answer and Explanation:

The preparation of the cost of goods sold section for the year ended is as follows;

Cost of goods sold section

G. Durler Company

For the year ending August 31

Beginning inventory                                              $17,200

Add: Purchases $149,000

less purchase returns and Allowances $2,000

Net purchases                                                       $147,000

Add: Freight-in                                                       $4,000

less ending inventory is                                       -$25,000

Cost of goods sold                                               $143,200

Answer 2

The cost of goods sold section for the year ending August 31 (periodic inventory)  is $143,200.

G. Durler Company Cost of goods sold section  for the year ending August 31

Beginning inventory                                              $17,200

Add Purchases                                                      $149,000

Less purchase returns and Allowances              ($2,000)

Net purchases                                                       $147,000

($149,000-$2,000)

Add Freight-in                                                        $4,000

Less Ending inventory                                         ($25,000)

Cost of goods sold                                              $143,200

($17,200+$147,000+$4,000-$25,000)

Inconclusion the cost of goods sold section for the year ending August 31 (periodic inventory)  is $143,200.

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