Reference no: EM133031219

Question - Computing cost of goods purchased and cost of goods sold - The following data are for Marvin Department Store. The account balances (in thousands) are for 2011

Marketing, distribution, and customer-services costs 37,000

Merchandise inventory, January 1, 2011 27,000

Utilities 17,000

General and administrative costs 43,000

Merchandise inventory, December 31, 2011 34,000

Purchases 155,000

Miscellaneous costs 4,000

Transportation-in 7,000

Purchase returns and allowances 4,000

Purchase discounts 6,000

Revenues 280,000

Required -

1. Compute (a) the cost of goods purchased and (b) the cost of goods sold.

2. Prepare the income statement for 2011.