Applying the Cost of Goods Sold Model The following amounts were obtained from the accounting records of Enderle Company: 2019 2020 2021 Beginning inventory $38,900 (b) (d) Net purchases (a) $71,200 $91,820 Ending inventory 42,100 (c) 42,350 Cost of goods sold 83,500 90,800 (e) Required: Compute the missing amounts.

Find below  a properly aligned details of the question:

The following amounts were obtained from the accounting records of Enderle Company:

                                     2016       2017      2018

Beginning inventory$38,900     (b         (d)

Net purchases              (a)$71,200$91,820

Ending inventory              42,100(c)42,350

Cost of goods sold      83,50090,800(e)

Find all the answers and computations below

Explanation:

In the year 2016, net purchases can be computed using the cost of sales formula below:

cost of sales=beginning inventory+purchases-ending inventory

purchases=cost of sales+ending inventory-beginning inventory

purchases=$83,500+$42,100-$38,900=$ 86,700.00  

Ending inventory in 2016=beginning inventory in 2017=$42,100

Ending inventory in 2017=beginning inventory+purchases-cost of sales

Ending inventory in 2017=$42,100+$72,100-$90,800=$ 23,400.00  

ending inventory in 2017=beginning inventory in 2018=$23,400.00  

cost of sales in 2018=beginning inventory+purchases-ending inventory

cost of sales in 2018=$23,400+$91,820 -$42,350 =$72,870

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explanation:

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