Question

The inventory accounts for Billings, Incorporated for the yearsending December 31,

2011, 2012 and 2013 are shown in the table below (all figures arein dollars):

2011 2022 2013

Inventories 250,200 272,300 260,100

Billings purchased $196,400 of materials in 2012 and $206,300 ofmaterials in

2013.

a. What did Billings report as cost of goods sold on its incomestatement in

2012?

b. What did Billings report as cost of goods sold on its incomestatement in

2013?