Durable Equipment Company Uses the Periodic Inventory System Requirement A: Compute Cost of Goods Sold

question 231

Essay

Durable Equipment Company uses the periodic inventory system.Durable reported the following selected amounts at June 30,2019 (the beginning inventory balance is also provided):
$$\begin{array} { | l | r | } \hline \text { Merchandise Inventory, July 1, } & \\2018 & \$ 22,000 \\\hline \text { Merchandise Inventory, June 30, } \\2019 & 19,000 \\\hline \text { Purchases } & 96,000 \\\hline \text { Purchase Discounts } & 5,000 \\\hline \text { Purchase Returns and Allowances } & 8,500 \\\hline \text { Freight In } & 3,200 \\\hline \text { Net Sales Revenue } & 212,400\\\hline \text { Delivery Expense } & 1,400 \\\hline \text { Sales Salaries Expense } &44,200 \\\hline \text { Scheff, Capital } &69,500 \\\hline\end{array}$$ Requirement A: Compute cost of goods sold.
Requirement B: Compute gross profit.

---

Definitions:

Eudicot Root

Eudicot Root refers to the root structure of eudicots, which are a major group of flowering plants characterized by having two seed leaves, or cotyledons, and a branching root system.

Vascular Cylinder

The central core of a plant's root, containing the vascular tissue (xylem and phloem) which transports water, nutrients, and sugars.

Pericycle

Layer of cells surrounding the vascular tissue of roots; produces branch roots.

Companion Cell

Plant cell in the vascular tissue of plants that metabolically supports the conducting cells of the phloem.