Cost of Goods Sold (COGS) Formula | Calculation | Definition | Example

Cost of Goods Manufactured (COGM) - How to Calculate COGM

The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019:

Multiple-Step Income Statement and Report Form of Balance Sheet
The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019:
Cash $117,000 Gerri Faber, Drawing $70,100
Accounts Receivable 317,500 Sales 4,229,500
Merchandise Inventory 355,600 Cost of Merchandise Sold 2,478,500
Estimated Returns Inventory 14,050 Sales Salaries Expense 697,000
Office Supplies 11,000 Advertising Expense 191,700
Prepaid Insurance 8,500 Depreciation Expense—Store Equipment 37,300
Office Equipment 257,500 Miscellaneous Selling Expense 16,400
Accumulated Depreciation—Office Equipment 175,000 Office Salaries Expense 380,500
Store Equipment 803,700 Rent Expense 56,200
Accumulated Depreciation—Store Equipment 257,500 Insurance Expense 17,400
Accounts Payable 178,200 Depreciation Expense—Office Equipment 28,100
Customer Refunds Payable 28,100 Office Supplies Expense 10,300
Salaries Payable 11,400 Miscellaneous Administrative Exp. 7,500
Note Payable (final payment due 2032) 375,000 Interest Expense 11,400
Gerri Faber, Capital 632,550
Required:
1.  Prepare a multiple-step income statement.

Prepare a statement of owner's equity.

Prepare a balance sheet, assuming that the current portion of the note payable is $15,000.

4.  Which type of income statement shows intermediate balances? 

Multiple-step 

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The following were selected from among the transactions completed by Babcock Company during November of the current year:

Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System
The following were selected from among the transactions completed by Babcock Company during November of the current year:
Nov. 3. Purchased merchandise on account from Moonlight Co., list price $79,000, trade discount 30%, terms FOB destination, 2/10, n/30.
4. Sold merchandise for cash, $41,210. The cost of the goods sold was $22,030.
5. Purchased merchandise on account from Papoose Creek Co., $46,800, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 added to the invoice.
6. Returned $11,900 ($17,000 list price less trade discount of 30%) of merchandise purchased on November 3 from Moonlight Co.
8. Sold merchandise on account to Quinn Co., $14,240 with terms n/15. The cost of the merchandise sold was $9,800.
13. Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
14. Sold merchandise on VISA, $225,360. The cost of the goods sold was $153,820.
15. Paid Papoose Creek Co. on account for purchase of November 5.
23. Received cash on account from sale of November 8 to Quinn Co.
24. Sold merchandise on account to Rabel Co., $54,400, terms 1/10, n/30. The cost of the goods sold was $32,940.
28. Paid VISA service fee of $3,490.
30. Paid Quinn Co. a cash refund of $6,300 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,460.
Required:
Journalize the transactions.

Nov. 3:
$79,000 - ($79,000 × 30%) = $55,300
$55,300 - ($55,300 × 2%) = $54,194
Nov. 5: $46,800 - ($46,800 × 2%) + $810 = $46,674
Nov.6: $11,900 - ($11,900 × 2%) = $11,662
Nov. 13: $54,194 - $11,662 = $42,532
Nov. 24: $54,400 - ($54,400 × 1%) = $32,940

Thanks

The following selected transactions were completed by Niles Co. during March of the current year:

The following selected transactions were completed by Niles Co. during March of the current year:

Mar. 1.	Purchased merchandise from Haas Co., $16,700, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $575 was added to the invoice.
5.	Purchased merchandise from Whitman Co., $12,200, terms FOB destination, n/30.
10.	Paid Haas Co. for invoice of March 1.
13.	Purchased merchandise from Jost Co., $11,000, terms FOB destination, 1/10, n/30.
14.	Issued debit memo to Jost Co. for $2,100 of merchandise returned from purchase on March 13.
18.	Purchased merchandise from Fairhurst Company, $12,100, terms FOB shipping point, n/eom.
18.	Paid freight of $260 on March 18 purchase from Fairhurst Company.
19.	Purchased merchandise from Bickle Co., $10,650, terms FOB destination, 2/10, n/30.
23.	Paid Jost Co. for invoice of March 13, less debit memo of March 14.
29.	Paid Bickle Co. for invoice of March 19.
31.	Paid Fairhurst Company for invoice of March 18.
31.	Paid Whitman Co. for invoice of March 5.

Required:                                                 

Journalize the entries to record the transactions of Britt Co. for March.

Mar. 1. Accounts Payable—Haas Co.
[$16,700 – ($16,700 × 2%)] + $575 = $16,941

Mar. 13. Accounts Payable—Jost Co.
[$11,000 – ($11,000 × 1%)] = $10,890

Mar. 14. Merchandise Inventory
[$2,100 – ($2,100 × 1%)] = $2,079

Mar. 19. Accounts Payable—Bickle Co.
[$10,650 – ($10,650 × 2%)] = $10,437

Mar. 23. Accounts Payable—Jost Co.
$10,890 – $2,079 = $8,811

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After I had done some interviews I realized the solution to the problems that I found for people who have fitness goals they want to reach. First important solution to their problems is that Opening fast casual restaurant for fitness, where customers would be very conformable and satisfied with our meal plan.

Executive Summary

After I had done some interviews I realized the solution to the problems that I found for people who have fitness goals they want to reach.

First  important solution to their problems is that Opening fast casual restaurant for fitness, where customers would be very conformable and satisfied with our meal plan. Our menu has many different sections for any kind of type person either if one wants to lose weight or build muscles. The second solution is helping people who do not have time to cook, will not have excuse to reach their goals. The third solution is that we will be having a food chain that will be served behind the counter by you own personnel with the variety that the customers will choose. The fourth solution is that we will show the Option of delivery by phone or online. Option online Carry-Out Order. Nutrition calculator shows the menu meals nutrition value will be added in the our webpage.

Problem Risk

Many people will be frustrated because they have not reached their goal. The risk is in adults and young, obesity will spread due to the lack of beneficial restaurants that add great value to the customers.

Hypothesis

It proved to us that there are a number of city dwellers who want to have a beneficial restaurant.

Solution Risk

From my analysis, it is evident that Billings do not have diet and delicious food restaurants, where athletes can eat when they do not have time to cook. the performance of the athletes could not be improve if there is a good high nutritional value.

Hypothesis

Solution interviews will validate that we will show the option of delivery by phone or online. Option online Carry-Out Order. Nutrition calculator shows the menu meals. nutrition value will be added in the our webpage.

Insights (insert pie charts with percentages of response from interview in part a whenever possible)

After reviewing all of the comments and extra notes from the solution interviews, everyone who we interviewed was very satisfied with the solutions we offered them. All interviewees with their different goals were happy and extremely excited to see our restaurant in the town that it would solve all of their nutrition problems The YouTube video really helped convince the children and teenagers that our facility would solve their problems when they saw the pictures of all the service our restaurant will provide them. They all said it looked really great.

Price Risk

The pricing model of our business is based on a pay per visit.

Hypothesis

Solution interviews will validate our belief that customers will be willing to pay our charge of the meals the high income willing to pay $600 a month, medium income $400, low income $250

The objectfve of Statistical Process Control - SPC is to:

Question 1 

The objectfve of Statistical Process Control - SPC is to: 

Select one. 

a. Determine whether a batch of raw materials should be accepted or rejected. 

b. Determine whether a batch of finished goods should be accepted or rejected.

 c.Detect assignable cause variations -as opposed to normal random variations- in the process and correct the process if assignable causes result in too much variation.

d. Fill a notebook with colorful charts. 

                                       

Question 2        

Sanford Corp. bought new technological systems to inspect the quality of products as they come off the production line. In the COST OF QUALRY framework, the expense of operating these high tech inspection systems would be an example of which of the following types of quality-related costs? 

Select one: 

a. Internal failure cost 

b. Quality Appraisal cost 

c. External failure cost 

d. Rework cost

Question 3 

In Statistical process Control Charts., the control limits are determined by consulting the FACTORS FOR COMPUTING CONTROL CHART LIMITS TABLE and using the values found there to calculate control limits. One of the calculations is D3 xRbar. This would establish which of the following control limits. 

Select one: 

a. The R chart, range, upper control limit.

 b. The R chart, range, lower control limit 

c. The X chart, means, upper control limit 

d. All Listed. 

QUALITY AT THE SOURCE suggests quality should be: 

Select one. 

a. Built into the product 

b. Inspected after the product has been produced 

c. Ensured by the quality control lab 

d. The job of Inspection Department 

Question 5 

Zanda Corp. has determined that it has too many products returned from customers. Zanda is interested in determining what factors or elements could contribute to the large number of returns. which of the  following quality tools would zanda , use to explore possible reasons for product returns, 

Select one: 

a. Process flowchart 

b. ABC analysis.

c. Cause and Effect diagram, Fishbone diagram 

d. Run diagrarm 

Question 6

Jones Company has identified an item for which the supply risk is high (there are very few suppliers} and the value of the purchase to the firm is high. This is called the Strategic category. A recommended way to deal with this type of item is to: 

Select one: 

a. Obtain it from lot of suppliers 

b. Find ways to purchase it more efficiently 

c. Build partnerships with suppliers for the long term 

a. Buy it locally, 

Question 7 

When small increases in consumer demand at the retail level produce progressively larger changes ot each stage upstream in the supply chain (wholesaler, manufacturer, supplier.), this is known as: 

Select one: 

a. Bullwhip effect

b. Vendor managed inventory 

c. Pareto effect

d. Buffering