1) Use the following to compute the cost of goods sold for a merchandising company:

Website Maintenance	$7,100
Delivery Expense	900
Freight In	2,900
Purchases	39,000
Ending Merchandise Inventory	4,900
Revenues	57,000
Marketing Expenses	9,900
Beginning Merchandise Inventory	7,900

2) Consider the following partially completed income statements for merchandising companies and compute the missing amounts:

	Gap	Nike
Sales	$101,000	$(d)
Cost of Goods Sold:
Beginning Merchandise Inv.	(a)	29,000
Purchases and Freight In	$48,000	(e)
Cost of Goods Available for Sale	(b)	88,000
Ending Merchandise Inv.	(1,900)	(1,900)
Cost of Goods Sold	59,000	(f)
Gross Profit	42,000	113,000
Selling and Admin. Expenses	(c)	84,000
Operating Income	$13,000	$(g)

3) Use the following inventory data to compute the cost of goods manufactured for the year:

Direct Materials Used	$10,000
Manufacturing Overhead	21,000
Work-in-Process Inventory:
Beginning	5,000
Ending	3,000
Direct Labor	7,000
Finished Goods Inventory:
Beginning	15,000
Ending	13,000

4) Use the following information to calculate the cost of goods sold for the month of June:

Finished Goods Inventory:
Beginning	$26,000
Ending	18,000
Cost of Goods Manufactured	156,000

5) Compute the cost of service to provide one haircut for Duncan and Oates given the following information:

February: 230 clients haircuts

Earned $5,200 in revenues

Operating Costs Incurred:

Hair Supplies Expense: $805

Building Rent Expense: 1,150

Utilities Expense 184

Depreciation Expense Equipment 46