An Introduction to Cost Terms and Purposes Cost of goods purchased, cost of goods sold, and income statement The following data are for Murray Department Store. The account balances (in thousands) are for 2020. Marketing, distribution, and customer-service costs $35,000 Merchandise inventory, January 1, 2020 22,000 Utilities 18,000 General and administrative costs 40,000 Merchandise inventory, December 31, 2020 33,000 Purchases 150,000 Miscellaneous costs 3,000 Transportation-in 5,000 Purchase returns and allowances 2,000 Purchase discounts 8,000 290,000 Revenues Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab or if you type the numbers in, you will be marked wrong. Requirements 1 Compute (a) the cost of goods purchased and (b) the cost of goods sold. 2 Prepare the income statement for 2020. a. Check your spelling carefully and do not abbreviate. b. Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted. 1a. Compute the cost of goods purchased. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab or if you type the numbers in, you will be marked wrong.) Cost of goods purchased 1b. Compute the cost of goods sold. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab or if you type the numbers in, you will be marked wrong.) Cost of goods sold 2. Prepare the income statement for 2020 (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab or if you type the numbers in, you will be marked wrong.) Gross Margin Operating costs: Total operating costs Operating income Murray Department Store Income Statement Year Ended December 31, 2020 (in thousands)