Bill Rose owns Rose Sporting Goods. At the beginning of the year, Rose Sporting Goods had $18,000 in inventory. During the year, Rose Sporting Goods purchased inventory that cost $66,000. At the end of the year, inventory on hand amounted to $28,500. Calculate the following:a. Cost of goods available for sale during the year. b. Cost of goods sold for the year. c. Amount of inventory Rose Sporting Goods would report on the year-end balance sheet.

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Business

Rory Larson

6 July, 13:49

Bill Rose owns Rose Sporting Goods. At the beginning of the year, Rose Sporting Goods had $18,000 in inventory. During the year, Rose Sporting Goods purchased inventory that cost $66,000. At the end of the year, inventory on hand amounted to $28,500. Calculate the following:a. Cost of goods available for sale during the year. b. Cost of goods sold for the year. c. Amount of inventory Rose Sporting Goods would report on the year-end balance sheet.

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Natalia Melendez · Answer 1

Instructions are listed below.

Explanation:

Giving the following information:

At the beginning of the year, Rose Sporting Goods had $18,000 in inventory.

Purchases = $66,000.

Ending inventory cost = $28,500.

A) The cost of goods available for sale is the sum of beginning inventory and the purchases.

Cost of goods available for sale = 18,000 + 66,000 = $84,000

B) COGS = beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS = 84,000 - 28,500 = $55,500

C) The ending inventory is the amount of goods that weren't sold:

Ending inventory = $28,500