Reference no: EM132607993

The income statement of Wilcox, Inc. includes the items listed below:

Net sales                                 $900,000

Gross profit                              320,000

Beginning inventory                   80,000

Purchase discounts                    15,000

Purchase returns and allowances 8,000

Freight-in                               10,000

Operating expenses                   300,000

Purchases                                540,000

Instructions:

Question 1: Use the appropriate items listed above as a basis for determining:

(a) Cost of goods sold.

(b) Cost of goods available for sale.

(c) Ending inventory.