Assuming the use of the periodic inventory system,use the data below to calculate the net cost of purchases and the cost of goods available for sale for the year ended December 31,20x5.
Definitions:
Raw Materials Inventory
The total cost of all the components and materials held by a company that are eventually used in the production process.
Gross Margin
The difference between the revenue earned from sales and the cost of goods sold, indicating the profitability from the core business activities before administrative and other expenses.
Merchandise Purchases
Transactions involving the buying of goods for sale, typically in a retail or wholesale business setting.
Inventory Levels
The quantity of goods and materials on hand at a given time within a business.
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