Chapter 2 - An Introduction to Cost Terms and Purposes - Assignment Material - Problems - Page 59: 2-29(1)

a. Cost of Goods Purchased = 155,000 + 7,000 - 4,000 - 6,000 Cost of Goods Purchased = 152,000 b. Cost of Goods Sold = 27,000 + 152,000 - 34,000 Cost of Goods Sold = 145,000

a. Cost of Goods Purchased = Purchases + Transportation-in - Purchase Returns and Allowances - Purchase Discounts b. Cost of Goods Sold = Beginning Merchandise Inventory + Cost of Goods Purchased - Ending Merchandise Inventory