ENTREP|LESSON 3

Question 1

refer to the amount of merchandise or goods sold by the business for a given period of time.

Answer 1

COGS / COS

Question 2

This is computed by adding the beginning inventory to the Net Amount of Purchases to arrive with Cost of goods available for sale from which the Merchandise Inventory end is subtracted.

Answer 2

COGS / COS

Question 3

-refers to goods and merchandise at the beginning of operation of business or accounting period.

Answer 3

Merchandise Inventory, beginning

Question 4

refer to the merchandise or goods purchased.
Example: Cost to buy each pair of Jeans or t shirt from a supplier.

Answer 4

Purchases

Question 5

refers to goods and merchandise left at the end of operation or accounting period.

Answer 5

Merchandise Inventory, end

Question 6

refers to amount paid to transport goods or merchandise purchased from the supplier to the buyer. In this case, it is the buyer who shoulders this costs.

Answer 6

Freight-in