## Answers

Beginning inventory | 320000 | |

Add: Purchases, gross | 496000 | |

Less: Purchase return and allowances | -6400 | |

Add: Freight-in | 22400 | |

Cost of goods available | 832000 | |

Sales, gross | 1008000 | |

Less: Sales returns | -16000 | |

Net sales | 992000 | |

Less: Gross profit | -248000 | =992000*25% |

Cost of goods sold | 744000 | |

Cost of goods available | 832000 | |

Less: Cost of goods sold | 744000 | |

Cost of ending inventory | 88000 |

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