The Office Mart store in South Beach experienced the following events during the current year:
1. Incurred $400,000 in marketing costs.
2. Purchased $1,200,000 of merchandise.
3. Paid $40,000 for transportation in costs.
4. Incurred $400,000 of administrative costs.
5. Took an inventory at year end and learned that goods costing $200,000 were on hand. This compared with a beginning inventory of $300,000 on January 1.
6. Determined that sales revenue during the year was $3,000,000.
7. Debited all costs incurred to the appropriate account and credited to Accounts Payable. All sales were for cash.
Required :
Give the amounts for the following items in the Merchandise Inventory account:
a. Beginning balance (BB). b. Transfers in (TI).
c. Ending balance (EB).
d. Transfers out (TO).