Comprehensive

The following information for $2019$ is available for Marino Company:

The beginning inventory is $$117,000.$

Purchases returns of $$8,000$ were made.

Purchases of $$294,000$ were made on terms of $\frac{2}{10},\frac{n}{30}.$ Eighty percent of the discounts were taken.

At December $31,$ purchases of $$23,000$ were in transit, FOB destination, on terms of $\frac{2}{10},\frac{n}{30}.$

The company made sales of $$648,000.$ The gross selling price per unit is twice the net cost of each unit sold.

Sales allowances of $$3,000$ were made.

The company uses the LIFO periodic method and the gross method for purchase discounts.

Required:

Compute the cost of the ending inventory before the physical inventory is taken. Ignore Sales allowances in your computations.

Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning

inventory.

Cost of sales from purchases

Cost of sales from beginning inventory

Total cost of goods sold