Cost of goods sold in a periodic system Delta Electric, Co., uses the periodic inventory system. Delta reported the following selected amounts at May 31, 2012:
|
Inventory, May 31, 2011 |
$ 16,000 |
Freight in |
$ 4,000 |
|
Inventory, May 31, 2012 |
23,000 |
Sales revenue |
174,000 |
|
Purchases (of inventory) |
84,000 |
Sales discounts |
6,000 |
|
Purchase discounts |
3,000 |
Sales returns |
17,000 |
|
Purchase returns |
9,000 |
Stockholders’ equity |
47,000 |
Requirement
1. Compute Delta’s
a. Net sales revenue.
b. Cost of goods sold.
c. Gross profit.