CGAS = Cost of Goods Available for Sale
EI = Ending Inventory
NS = Net Sales Revenue
CGS = Cost of Goods Sold
TIP: Examine your solution to the exercise above and judge the reasonableness of your answers. What do you expect the relationship of the answers to be?
TIP: When working a problem which requires the computation of either ending inventory or cost of goods sold, remember that the total of the ending inventory and the cost of goods sold should equal the total cost of goods available for sale during the period (beginning inventory plus the net cost of the purchases).
TIP: Sales revenue represents the selling prices of goods sold; whereas, cost of goods sold expense represents the cost ...