Cost of goods purchased, cost of goods sold, and income statement. The following data are for Montgomery Retail Outlet Stores. The account balances (in thousands) are for 2011.
|
Marketing and advertising costs |
$ 24,000 |
|
Merchandise inventory, January 1, 2011 |
45,000 |
|
Shipping of merchandise to customers |
2,000 |
|
Building depreciation |
$ 4,200 |
|
Purchases |
260,000 |
|
General and administrative costs |
32,000 |
|
Merchandise inventory, December 31, 2011 |
52,000 |
|
Merchandise freight in |
10,000 |
|
Purchase returns and allowances |
11,000 |
|
Purchase discounts |
9,000 |
|
Revenues |
320,000 |
Required 1. Compute (a) the cost of goods purchased and (b) the cost of goods sold.
2. Prepare the income statement for 2011.