Question Details

P8-15 Comprehensive The following information for 2010 is available for the Marino company:

1. The beginning inventory is$100,000

2. Purchases of $300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken.

3. Purchases returns of $4000 were made.

4. At December 31, purchases of$20,000 were in transit, FOB destination, on terms of 2/10,n/30.

5. The company made sales of$640,000. The gross selling price per unit is twice the net cost of each unit sold.

6. Sales allowances of $6,000 were made.

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

1. Compute the cost of the ending inventory before the physical inventory is taken.

2. 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.

I need the following answers for my template:

Beginning Inventory ___________

Gross Purchases ______________

Purchase Returns ______________

Total Purchases before discounts taken _____________

*Purchase discounts taken________________

Net Purchases _______________

Cost of Goods Sold ______________

Ending Inventory _______________

*Calculation of Purchase discounts taken:

(Purchases-Purchase Returns) x Percent Discounts x Percent of Discounts taken = Purchase disc taken

________________________ ______________ ___________________ _______________

Sales from net Purchases = Net purchases x 2

___________________ __________ _______________

Sales from Beginning Inventory = Total Sales - Sales from net purchase period

______________________ _______ _______________________

Cost of sales from beginning Inventory = Sales from beg. Inventory / 2

_____________________________ ________________ __________

Net Purchases __________

Cost of Sales from beginning inventory ______________

Total Cost of goods Sold _______________

Please note the blank spaces are what needs to be answered. Thank you for your assistance! :-)