1.COGS , Gross Profit and Gain (loss) due to MFOI of MARCH.

COGS Feb. March, and April.

2.

Flounder Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.

Inventory, May 1		$ 147,800
Purchases (gross)		637,400
Freight-in		31,000
Sales revenue		953,600
Sales returns		72,200
Purchase discounts		11,900

a. Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales. b. Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost. (Round percentage of sales to 2 decimal places, e.g. 78.74% and final answer to 0 decimal places, e.g. 6,225.)

Jan. 31 $15,900 15,370 Inventory at cost Inventory at LCNRV Purchases for the month Sales for the month Feb. 28 $16,006 13,356 18,020 30,740 Mar. 31 $18,020 16,536 25,440 37,100 Apr. 30 $14,840 14,098 28,090 42,400 Your answer is partially correct. Try again. From the information, prepare (as far as the data permit) monthly income statements in columnar form for February, March, and April. The inventory is to be shown in the statement at cost; the gain or loss due to market fluctuations is to be shown separately (using a valuation account). (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) February March April Sales Revenue 30740 37100 42400 Cost of Goods Sold Inventory, Beginning 15900 16006 18020 Purchases 18020 25440 28090 x X Cost of Goods Available Inventory, Ending 16006 18020 14840 X Cost of Goods Sold 17914 20426 31270