Answer:
a. $46,150
b. $26,140
Explanation:
The computation is shown below:
a. Beginning inventory $50,000
Add: Purchase made during the year $105,000
Less: Purchase return ($7,000)
Less: Purchase discount ($950)
Add: Inward transportation cost $1,400
Less: Cost of goods sold ($102,300)
Ending inventory $46,150
b. Beginning inventory $12,000
Add: Purchase made during the year $52,900
Less: Purchase allowance ($1,600)
Less: Purchase discount ($560)
Add: Inward transportation cost $1,300
Less: Cost of goods sold ($37,900)
Ending inventory $26,140
We simply applied the above calculations so that the correct amount of ending inventory could come
