Use the exhibits provided to calculate the amounts for the Bristol Co. schedule of cost of goods sold for Year 5.

Select from the option list provided the correct amount for each item on the schedule of cost of goods sold below. Each choice may be used once, more than once, or not at all.

Account	Amount
1. Beginning inventory
2. Purchases
3. Purchase discounts
4. Freight in
5. Goods available for sale
6. Ending inventory
7. Cost of goods sold

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Bristol Co. Trial Balance As of December 31, Year 5 Selected Accounts To: From: Date: Re: Frank, Sales (33,000 units x $16) Sales discounts Purchases Purchase discounts Freight-in Freight-out Email Re: Inventory Accounting Methods $528,000 7,500 368,900 18,000 Frank Garnett, Accounting Manager, Bristol Co. Keaton Grant, CAO, Bristol Co. December 2, Year 5 Inventory Accounting Methods 5,000 11,000 I just wanted to recap the inventory accounting methods Bristol Co. is using for its December 31, Year 5, financial statements that we spoke about earlier. 1. Bristol s accounting policy is to report inventory using LIFO periodic and the lower-of- cost-or-market method applied to total inventory. 2. Purchases with cash discounts are recorded using the gross method. 3. Bristol uses the direct method of reporting losses from write-downs of inventory to market. To: Keaton Grant, CAO, Bristol Co. From: Stan Bryson, Purchasing Manager, Bristol Co. January 2, Year 6 Date: Re: December 31, Year 5 Unit Costs We currently sell one product that we purchase from various suppliers. The following information was gathered from the budgeting department. Please see to it that our accounting records properly reflect this policy. Yours, Keaton Replacement cost of inventory Net realizable value Normal profit margin Inventory Purchases $8 per unit $8.80 per unit $1.05 per unit Bristol Co. Inventory Purchases Year 5 Beginning inventory, January 1 Purchases, quarter ended March 31 Purchases, quarter ended June 30 Purchases, quarter ended September 30 Purchases, quarter ended December 31 Total Units Cost Per Unit ($) 8,000 8.20 12,000 8.25 7.90 7.50 7.70 15,000 13,000 7,000 55,000 Bristol Co. Trial Balance As of December 31, Year 5 Selected Accounts To: From: Date: Re: Frank, Sales (33,000 units x $16) Sales discounts Purchases Purchase discounts Freight-in Freight-out Email Re: Inventory Accounting Methods $528,000 7,500 368,900 18,000 Frank Garnett, Accounting Manager, Bristol Co. Keaton Grant, CAO, Bristol Co. December 2, Year 5 Inventory Accounting Methods 5,000 11,000 I just wanted to recap the inventory accounting methods Bristol Co. is using for its December 31, Year 5, financial statements that we spoke about earlier. 1. Bristol s accounting policy is to report inventory using LIFO periodic and the lower-of- cost-or-market method applied to total inventory. 2. Purchases with cash discounts are recorded using the gross method. 3. Bristol uses the direct method of reporting losses from write-downs of inventory to market. To: Keaton Grant, CAO, Bristol Co. From: Stan Bryson, Purchasing Manager, Bristol Co. January 2, Year 6 Date: Re: December 31, Year 5 Unit Costs We currently sell one product that we purchase from various suppliers. The following information was gathered from the budgeting department. Please see to it that our accounting records properly reflect this policy. Yours, Keaton Replacement cost of inventory Net realizable value Normal profit margin Inventory Purchases $8 per unit $8.80 per unit $1.05 per unit Bristol Co. Inventory Purchases Year 5 Beginning inventory, January 1 Purchases, quarter ended March 31 Purchases, quarter ended June 30 Purchases, quarter ended September 30 Purchases, quarter ended December 31 Total Units Cost Per Unit ($) 8,000 8.20 12,000 8.25 7.90 7.50 7.70 15,000 13,000 7,000 55,000