Computing cost of goods purchased and cost of goods sold. The following data are for Marvin Department Store. The account balances (in thousands) are for 2011.
|
Marketing, distribution, and customer service costs |
$ 37,000 |
|
Merchandise inventory, January 1, 2011 |
27,000 |
|
Utilities |
17,000 |
|
General and administrative costs |
43,000 |
|
Merchandise inventory, December 31, 2011 |
34,000 |
|
Purchases |
155,000 |
|
Miscellaneous costs |
4,000 |
|
Transportation in |
7,000 |
|
Purchase returns and allowances |
4,000 |
|
Purchase discounts |
6,000 |
|
Revenues |
280,000 |
1. Compute (a) the cost of goods purchased and (b) the cost of goods sold.
2. Prepare the income statement for 2011.