Student Name:
Class:
200,000$
300,000
500,000
175,000
325,000$
Correct!
500,000$
875,000
1,375,000
225,000
1,150,000$
Correct!
Part 2
To:
From:
Date:
Subject:
Memorandum
For Year Ended December 31, 2013
Merchandise purchases
Goods available for sale
The Merchandise Inventory account on December 31 for both Sports World
and the Finished Goods Inventory account on December 31 for Sno-Board
are computed and reported on the income statement as part of cost of goods
sold. The inventory accounts must also be included in the current asset
section of the balance sheet. Since Sno-Board is a manufacturer, it will also
have raw materials and goods in process inventory accounts.
Merchandising Business
Instructor
Cost of goods sold
Cost of goods sold:
Finished goods inventory, December 31, 2012
Cost of goods manufactured
Partial Income Statement
SPORTS WORLD RETAIL
For Year Ended December 31, 2013
Partial Income Statement
Goods available for sale
Less finished goods inventory, December 31, 2013
Less merchandise inventory, December 31, 2013
Cost of goods sold
Problem 14-06A
McGraw-Hill/Irwin
SNO-BOARD MANUFACTURING
Manufacturing Business
Cost of goods sold:
Merchandise inventory, December 31, 2012
Sports World Sno-Board
Retail Manufacturing
200,000$
500,000$
300,000
875,000
175,000
225,000
1,150,000$
Beginning inventory:
Merchandise
Finished goods
Cost of purchases
Check figure:
Financial data at December 31, 2013:
(1) Sno-Board’s cost of goods sold
Cost of goods manufactured
Ending inventory
Merchandise
Finished goods