Comprehensive
The following information for is available for Marino Company:
The beginning inventory is $
Purchases returns of $ were made.
Purchases of $ were made on terms of Eighty percent of the discounts were taken.
At December purchases of $ were in transit, FOB destination, on terms of
The company made sales of $ The gross selling price per unit is twice the net cost of each unit sold.
Sales allowances of $ were made.
The company uses the LIFO periodic method and the gross method for purchase discounts.
Required:
Compute the cost of the ending inventory before the physical inventory is taken. Ignore Sales allowances in your computations.
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.
Cost of sales from purchases
Cost of sales from beginning inventory
Total cost of goods sold
