Lewis Incorporated and Clark Enterprises report the following amounts for the year. Lewis Clark Inventory (beginning) $ 16,000 $ 42,000 Inventory (ending) 10,000 52,000 Purchases 146,600 165,400 Purchase returns 7,000 52,000 Required: 1. Calculate cost of goods sold for each company.

Cost of Goods Sold - Lewis Incorporated $ 145,000

Cost of Goods Sold - Clark Enterprises $ 103,400

Explanation:

Computations for calculation of cost of goods sold

Cost of goods sold = Opening inventory + Purchases (Net) - Closing Inventory

Lewis Incorporated

Opening Inventory $ 16,000

Add: Purchases $ 146,000

Less: Purchase returns $ 7,000

Net Purchases $ 139,000

Cost of good available for sale $ 155,000

Less: Ending Inventory $ (10,000)

Cost of Goods Sold - Lewis Incorporated $ 145,000

Clark Enterprises

Opening Inventory $ 42,000

Add: Purchases $ 165,400

Less: Purchase returns $ 52,000

Net Purchases $ 113,400

Cost of good available for sale $ 155,400

Less: Ending Inventory $ (52,000)

Cost of Goods Sold - Clark Enterprises $ 103,400

Lewis Incorporated Cost Of Goods Sold $ 145,600

Clark Enterprises Cost Of Goods Sold $103,400

Explanation:

Lewis Incorporated

Inventory (beginning) $ 16,000

Add Purchases 146,600

Less Purchase returns 7,000

Net Purchases 139,600

Less Inventory (ending) (10,000)

Cost Of Goods Sold $ 145,600

Clark Enterprises

Inventory (beginning) $ 42,000

Add Purchases 165,400

Less Purchase returns 52,000

Net Purchases 113,400

Less Inventory (ending) (52,000)

Cost Of Goods Sold $103,400

The brackets indicate that the amount is deducted.