Calculate the cost of goods sold (COGS) for scenarios a, b, and c.

You're on a roll — here are the solutions to the short answer questions: QUESTION 11 To calculate the cost of goods sold (COGS), we use the formula: COGS = Opening Stock + Purchases - Closing Stock Where Purchases = Cash Purchases + Credit Purchases. a) Step 1: Calculate total purchases. Purchases = K500.00 (cash) + K1,000.00 (credit) = K1,500.00 Step 2: Calculate Cost of Goods Sold. COGS = K700.00 (opening stock) + K1,500.00 (purchases) - K1,600.00 (closing stock) COGS = K2,200.00 - K1,600.00 = K600.00 The cost of goods sold for scenario a is K 600.00. b) Step 1: Calculate total purchases. Purchases = K500.00 (cash) + K1,000.00 (credit) = K1,500.00 Step 2: Calculate Cost of Goods Sold. COGS = K1,200.00 (opening stock) + K1,500.00 (purchases) - K600.00 (closing stock) COGS = K2,700.00 - K600.00 = K2,100.00 The cost of goods sold for scenario b is K 2,100.00. c) Step 1: Calculate total purchases. (Refund Inward relates to sales, not purchases, so it is not included in COGS calculation here). Purchases = K1,500.00 (cash) + K1,000.00 (credit) = K2,500.00 Step 2: Calculate Cost of Goods Sold. COGS = K900.00 (opening stock) + K2,500.00 (purchases) - K1,600.00 (closing stock) COGS = K3,400.00 - K1,600.00 = K1,800.00 The cost of goods sold for scenario c is K 1,800.00. QUESTION 12 The provided table lists transactions with "SUPPLIER OR TRADE CREDITOR," indicating these are purchases made by the business from its suppliers. The "AMOUNT (K)" column represents the value of these credit purchases. The table does not contain any information about sales to customers. Therefore, the amount for credit sales cannot be determined from the given information. The amount for credit sales is Not available. QUESTION 13 A liability in the balance sheet represents amounts owed by the business. From the table, we need to calculate the total amount owed to suppliers (trade creditors). Step 1: Calculate total credit purchases (amounts from suppliers). Total Credit Purchases = K200.00 + K930.00 + K518.00 + K710.00 = K2,358.00 Step 2: Identify total payments made to suppliers. The "ACCOUNT PAID" column shows payments of K200.00 and K518.00, with a total of K718.00. Total Payments Made = K200.00 + K518.00 = K718.00 Step 3: Calculate the amount still owed (liability). Amount Owed = Total Credit Purchases - Total Payments Made Amount Owed = K2,358.00 - K718.00 = K1,640.00 The amount that will be shown as a liability in the balance sheet is K 1,640.00. Send me the next one 📸