Freight in 16,600 Total cost of merchandise purchased Inventory available for sale Inventory, April 30,...

Transcribed Image Text:

Freight in 16,600 ✔ Total cost of merchandise purchased Inventory available for sale Inventory, April 30, 20Y8 Cost of goods sold before estimated returns Estimated returns Cost of goods sold 3,586,600 3,966,600 415,000 $ 3,551,600 11,600 3,540,000 Feedback ▼Check My Work (a) The cost of merchandise sold section includes the beginning inventory, plus net purchases, plus freight in, and less the ending inventory. Use Exhibit 20 as an illustration. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 20Y8. $ c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system? No Feedback ▼Check My Work (b) Sales minus the cost of merchandise sold equals the gross profit. (c) The cost of merchandise sold is subtracted from sales to arrive at gross profit. Will the cost of merchandise sold or sales be a different amount under either method? Freight in 16,600 ✔ Total cost of merchandise purchased Inventory available for sale Inventory, April 30, 20Y8 Cost of goods sold before estimated returns Estimated returns Cost of goods sold 3,586,600 3,966,600 415,000 $ 3,551,600 11,600 3,540,000 Feedback ▼Check My Work (a) The cost of merchandise sold section includes the beginning inventory, plus net purchases, plus freight in, and less the ending inventory. Use Exhibit 20 as an illustration. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 20Y8. $ c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system? No Feedback ▼Check My Work (b) Sales minus the cost of merchandise sold equals the gross profit. (c) The cost of merchandise sold is subtracted from sales to arrive at gross profit. Will the cost of merchandise sold or sales be a different amount under either method?

Answer rating: 100% (QA)

The cost of goods sold COGS and the cost of sales are related concepts that reflect the costs associated with producing or procuring goods for sale CO... View the full answer