A physical count of inventory was done at the year end, resulting in $239,000 in inventory. Beermann Craft Brews uses a Periodic Inventory System:

• Calculate Cost of Goods Sold for the year
• What amount of inventory will be reported on the Balance Sheet?
• Calculate Gross Profit

 

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The following balances are on the Trial Balance for Beermann's Craft Brews, LLC, a craft beer distributor, at year-end December 31, 2018, in no particular order: Inventory Accounts Receivable Sales Revenue Purchase Discounts Purchases Refund Payable Accounts Payable Delivery Expense Purchase Returns & Allowances Freight In Sales Discounts Forfeited $250,000 45,800 310,000 3,400 170,000 11,750 39,350 15,500 9,220 12,170 2,600 The following balances are on the Trial Balance for Beermann's Craft Brews, LLC, a craft beer distributor, at year-end December 31, 2018, in no particular order: Inventory Accounts Receivable Sales Revenue Purchase Discounts Purchases Refund Payable Accounts Payable Delivery Expense Purchase Returns & Allowances Freight In Sales Discounts Forfeited $250,000 45,800 310,000 3,400 170,000 11,750 39,350 15,500 9,220 12,170 2,600

Answer rating: 100% (QA)

To calculate the Cost of Goods Sold COGS we need to subtract the ending inventory from the cost of g... View the full answer