Exhibit 22-13

-Refer to Exhibit 22-13. What dollar amounts go in blanks (T)and (U)?

Question

Exhibit 22-13
 
-Refer to Exhibit 22-13. What dollar amounts go in blanks (T)and (U)?

Quizplus · Accepted Answer

The formula for calculating cost of goods sold (COGS) is beginning inventory plus purchases minus ending inventory. 
In blank (T), we need to find the cost of goods available for sale: 
$80 (beginning inventory) + $70 (purchases) = $150 
In blank (U), we need to find the ending inventory: 
$150 (cost of goods available for sale) - $120 (cost of goods sold) = $30. Therefore, the answer is choice C ($20 and $30).

Exhibit 22-13 -Refer to Exhibit 22-13. What Dollar Amounts Go in Blanks