Carrying inventories: Perpetual and periodic methods
The following information comes from the records of Telly”s Supply:
|
Beginning inventory |
$32,000 |
|
Inventory purchases |
85,000 |
|
Transportation-in |
4,300 |
An inventory count taken at year-end indicates that inventory with a cost of $50,000 is on hand as of December 31, 2011.
Assume that inventory purchases and transportation-in are both reflected in the inventory account, which shows an ending balance of $52,000. Compute cost of goods sold along with any adjusting entries required at the end of the period.