how to The beginning inventory of merchandise at Francesca Co. and data on purchases and sales for a three-month period are as follows:
accounting
To calculate the ending inventory of merchandise at Francesca Co., you will need the beginning inventory, purchases, and sales data for a three-month period. Let's break down the steps to get the answer:
Step 1: Calculate the Net Purchases
To calculate net purchases, you need to subtract the returns and allowances from the total purchases. The formula is as follows:
Net Purchases = Total Purchases - Returns and Allowances
Step 2: Calculate the Cost of Goods Available for Sale
The cost of goods available for sale is the sum of the beginning inventory and net purchases. The formula is as follows:
Cost of Goods Available for Sale = Beginning Inventory + Net Purchases
Step 3: Calculate the Cost of Goods Sold
To calculate the cost of goods sold, you need to subtract the ending inventory from the cost of goods available for sale. The formula is as follows:
Cost of Goods Sold = Cost of Goods Available for Sale - Ending Inventory
Step 4: Calculate the Ending Inventory
To calculate the ending inventory, you need to subtract the cost of goods sold from the cost of goods available for sale. The formula is as follows:
Ending Inventory = Cost of Goods Available for Sale - Cost of Goods Sold
By following these steps, you can calculate the ending inventory of merchandise at Francesca Co. using the given data on purchases and sales for a three-month period. Please provide the specific data for each category (beginning inventory, purchases, and sales) so that I can help you perform the calculations.