The trial balance of Pina Colada Corp. at the end of its fiscal year, August 31, 2022, includes these accounts:

Beginning Inventory $18,930;

Purchases $230,920;

Sales Revenue $205,600;

Freight-In $8,490;

Sales Returns and Allowances $4,650;

Freight-Out $2,100; and Purchase Returns and Allowances $5,030.

The ending inventory is $20,700.

Required:

1. Prepare a cost of goods sold section (periodic system) for the year ending August 31, 2017.

Question

Boston Keller

Business

15 November, 20:31

The trial balance of Pina Colada Corp. at the end of its fiscal year, August 31, 2022, includes these accounts:

Beginning Inventory $18,930;

Purchases $230,920;

Sales Revenue $205,600;

Freight-In $8,490;

Sales Returns and Allowances $4,650;

Freight-Out $2,100; and Purchase Returns and Allowances $5,030.

The ending inventory is $20,700.

Required:

1. Prepare a cost of goods sold section (periodic system) for the year ending August 31, 2017.

+4

Answers (1)

Know the Answer?

Draven Patel · Answer 1

Cost of Goods Sold $237640

Explanation:

Pina Colada Corp.

The Cost OF Goods Sold Statement

August 31, 2022

Beginning Inventory $18,930;

Add Cost of goods Purchased $230,920;

Add Freight-In $8,490

Cost of Goods Available for Sale 258340

Less Ending Inventory $20,700

Cost of Goods Sold $237640

By updating merchandising inventory and closing Purchases and Freight in the periodic system transfers the cost of goods sold amount to income summary.