1. Given the following year-end information, compute gross profit. Show your calculations. (1/2 point) Net Revenues (Net Sales) $500,000 Accounts Receivable 30,000 Ending Inventory 47,000 Cost of Goods Sold 250,000

2. Grey Corporation uses the perpetual inventory system. Make journal entries for the following inventory-related transactions. (3 points) Dec. 2 Purchased inventory from a supplier for $2,900 on account, with credit terms 2/10, n/30 Dec. 5 Returned $300 of the inventory purchased on Dec. 2, which was defective Dec. 10 Paid the supplier the full amount owed, taking advantage of the discount 12. Suppose a company overstates its ending Inventory amount. What effect will this have on the reported amount of Cost of Goods Sold in the year of the error (the current year)?

3.

Inventory records for Cameron Products Inc. revealed the following: Date Transaction Number of Units Unit Cost Total Cost April 1 Beginning Inventory 400 $2.40 April 14 Purchase 400 $2.50 April 22 Purchase 200 $2.60 -------- Total Goods Available for Sale --------- The company sold 900 units during the month. Compute the ending inventory (EI) and Cost of Goods Sold (COGS) under 3 methods: FIFO, LIFO, and weighted-average cost. Show your calculations. (3 points) FIFO Cost Of Good Sold: $__________ Ending Inventory $__________ LIFO Cost Of Good Sold: $__________ Ending Inventory $__________ Weighted Average Cost Of Good Sold: $__________ Ending Inventory $__________