Inventory and Cost Of Sales Calculations
Inventory Calculation		October		November		December
Product Name
Summit Tent (P-101)	Unit Cost	Number Units	Ending Inventory	Number Units	Ending Inventory	Number Units	Ending Inventory
Trail Pack (P-102)	$150	40	$6,000	33	$4,950	34	$5,100
Trekking Poles (P-103)	$60	72	$4,320	52	$3,120	49	$2,940
	$25	54	$1,350	49	$1,225	59	$1,475
Total Inventory			$11,670		$9,295		$9,515
Correct Calculation
Cost Of Sales Calculation		October		November		December
Beginning Inventory			$0.00		$11,670.00		$9,295.00
Purchases			33,150.00		14,600.00		17,950.00
Freight In			380.00		190.00		390.00
Less Purchase Returns & Allowances			(400.00)		(120.00)		(300.00)
Less Purchase Discounts			(186.00)		(264.50)		(194.30)
Net Cost of Purchases			$32,944.00		$14,405.50		$17,845.70
Cost of Goods Available for Sale			$32,944.00		$26,075.50		$27,140.70
Less: Ending Merchandise Inventory (Physical Count)			(11,670.00)		(9,295.00)		(9,515.00)
Cost Of Sales			$21,274.00		$16,780.50		$17,625.70
Your Calculation		October		November		December
Cost Of Sales Calculation
Beginning Inventory			$0.00		$0.00		$0.00
Purchases			0.00		0.00		0.00
Freight In			0.00		0.00		0.00
Less Purchase Returns & Allowances-Use minus sign			0.00		0.00		0.00
Less Purchase Discounts-Use minus sign			0.00		0.00		0.00
Net Cost of Purchases			$0.00		$0.00		$0.00
Cost of Goods Available for Sale			$0.00		$0.00		$0.00
Less: Ending Merchandise Inventory (Physical Count)			(11,670.00)		(9,295.00)		(9,515.00)
Cost Of Sales			($11,670.00)		($9,295.00)		($9,515.00)
Note: Enter Purchase Returns, Purchase Discounts
and Ending Inventory with a minus sign -
Normally, you need to take a physical inventory and assign costs to the products
in order to calculate the amount for the ending inventory
In our simulation the inventory amount is given
Note: Enter Purchase Returns, Purchase Discounts, and Ending Inventory
witn a minus sign -
Get your amounts for this schedule from your financial statements before
entering your inventory adjustment journal entry !