Flite Company had beginning inventory on May 1 of $12000. During the month the company made purchases of $38000 but returned $2000 of goods because they were defective. At the end of the month the inventory on hand was valued at $16500.
Calculate cost of goods available for sale and cost of goods sold for the month.

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Trevor Olney · Accepted Answer

Final Answer :   Beginning inventory  $ 12 , 000  Net purchases  ( $ 38 , 000 − $ 2 , 000 ) + 36 , 000 ‾  Goods available for sale  $ 48 , 000  Ending inventory  − 16 , 500 ‾  Cost of goods sold  $ 31 , 500 ‾ \begin{array} { l r } 	ext { Beginning inventory }  &  \$ 12,000 \	ext { Net purchases } ( \$ 38,000 - \$ 2,000 )  &  \underline { + 36,000 } \	ext { Goods available for sale }  &  \$ 48,000 \	ext { Ending inventory }  &  \underline { - 16,500 } \	ext { Cost of goods sold }  &  \underline {\$ 31,500}\end{array}  Beginning inventory   Net purchases  ( $38 , 000 − $2 , 000 )  Goods available for sale   Ending inventory   Cost of goods sold  ​ $12 , 000 + 36 , 000 ​ $48 , 000 − 16 , 500 ​ $31 , 500 ​ ​

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