Nutriset Fonds reports inventory at the lower of average cost or market. Prior to releasing its March 2008 financial statements, Nutriset's preliminary income statement, before the year-end adjustments, appears as follows:

Nutriset has determined that the replacement cost of ending inventory is \(\$ 18,000\). Cost is \(\$ 21,000\).
Requirement Show how Nutriset should report sales, cost of goods sold, and gross profit.

Transcribed Image Text:

Sales revenue NUTRISET FOODS Income Statement (partial) Cost of goods sold Gross profit $118,000 48.000 $ 70,000