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Applying the Cost of Goods Sold Model
The following amounts were obtained from Stanwick Company's accounting records.
| | Year 1 | | Year 2 |
| Net sales | | $388,600 | | | $427,460 |
| Cost of goods sold: | | | | | |
| Beginning inventory | $36,800 | | | (d) | |
| Purchases | (a) | | | 296,700 | |
| Goods available for sale | (b) | | | (e) | |
| Ending inventory | 42,060 | | | (f) | |
| Cost of goods sold | | (c) | | | 295,390 |
| Gross margin | | $113,560 | | | (g) |
Required:
Compute the missing amounts. Input your answers as positive numbers.
| | Year 1 | | Year 2 |
| Net sales | | $388,600 | | | $427,460 |
| Cost of goods sold: | | | | | |
| Beginning inventory | $36,800 | | | $fill in the blank 1 | |
| Purchases | fill in the blank 2 | | | 296,700 | |
| Goods available for sale | fill in the blank 3 | | | fill in the blank 4 | |
| Ending inventory | 42,060 | | | fill in the blank 5 | |
| Cost of goods sold | | fill in the blank 6 | | | 295,390 |
| Gross margin | | $113,560 | | | $fill in the blank 7 |
Answer & Explanation
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