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+--- Thread: Inventory question: Sales and Purchase Returns (/thread-inventory-question-sales-and-purchase-returns)
Inventory question: Sales and Purchase Returns - jessiemok - 02-07-2010
Hello,everyone. I am a accounting student,second semester. I taking financial accounting and reporting this sem. I have some problem about "inventory" not understand,hope you all can help me to solute it.
1/1 beginning balance - 500 units, RM 150 per unit
10/1 purchase 300 units for RM 120 per unit
15/1 sold 100 units for RM 180 per unit
20/1 sales return- 5 units of product sold on 15/1
23/1 purchase return- 10 units of product purchased on 10/1
purchase discount RM 50
sales discount RM 30
Above is the example of problem i want to ask. I want to ask how to find the cost of goods sold and ending inventory? And how to calculate income statement?
* using FIFO inventory method
I confused with the sales return and purchase return for how to put them together with COGS.
Hope you all can help me solute it! Thanks![)]
- Dard - 02-07-2010
The purchases for 10/1 will be 290units(300-10purchase returns)
The sales for 15/1 will be 95units(100-5sales return)