Assume the same information as in BE5-11 and also that Kowloon Company has beginning inventory (in thousands) of W 60,000, ending inventory of W 86,000, and net sales of W 680,000. Determine the amounts to be reported for cost of goods sold and gross profit.
In BE5-11
Assume that Kowloon Company uses a periodic inventory system and has these account balances (in thousands): Purchases W 430,000; Purchase Returns and Allowances W 13,000; Purchase Discounts W 8,000; and Freight-In W 16,000. Determine net purchases and cost of goods purchased.