Inventories, Cost of Goods Sold, and Net Income

The data presented below are for a retail organization and a manufacturing organization.

1. Fill in the missing data for the retail organization:

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Sales

$9

$ e

$15

$ k

Gross margin

a

4

5

1

Ending merchandise inventory

5

f

5

m

Beginning merchandise inventory

4

g

h

5

Net cost of purchases

b

7

9

n

Operating income

3

2

i

2

Operating expenses

c

2

2

4

Cost of goods sold

5

6

j

11

Cost of goods available for sale

d

12

15

15

2. Fill in the missing data for the manufacturing organization:

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Ending finished goods inventory

$a

$ 3

$ h

$ 6

Cost of goods sold

6

3

5

1

Operating income

1

3

1

m

Cost of goods available for sale

8

d

10

13

Cost of goods manufactured

5

e

i

8

Gross margin

4

f

j

7

Operating expenses

3

g

5

6

Beginning finished goods inventory

b

2

3

n

Sales

c

10

k

14