McMillan Company Uses the Periodic Inventory System Calculate Each of the Following:
Cost of Goods Available

question 91

Essay

McMillan Company uses the periodic inventory system.It has compiled the following information in order to prepare the financial statements at December 31,2010:
$$\begin{array} { l r } \text { Gross sales during 2010 } & \$ 2,000,000 \\\text { Sales returns and allowances during } 2010 & 50,000 \\\text { Beginning inventory, January 1, 2010 } & 100,000 \\\text { Ending inventory, December } 31,2010 & 120,000 \\\text { Purchases during 2010 } & 750,000\end{array}$$ Calculate each of the following:
Cost of goods available for sale,cost of goods sold and gross margin.

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Definitions:

Overtime

Payment for hours worked by employees beyond their standard working hours, usually at a higher rate.

Cost Per Employee

The total cost incurred by a company divided by the number of its employees, often used to measure efficiency.

Annual Report

A comprehensive report detailing a company's activities and financial performance throughout the preceding year.

Wage Rate

The amount of money a worker is paid per unit of time (such as an hour) worked.