Problem: 3

The income statement of Wilcox, Inc. includes the items listed below:

Net sales $900,000

Gross profit 320,000

Beginning inventory 80,000

Purchase discounts 15,000

Purchase returns and allowances 8,000

Freight-in 10,000

Operating expenses 300,000

Purchases 540,000

Instructions: Use the appropriate items listed above as a basis for determining:

(a) Cost of goods sold.

(b) Cost of goods available for sale.

(c) Ending inventory.