6END_summary (similar to) Question Help The Book Nook began 2018 with 30,000 units of inventory that cost $15,000. During 2018, The Book Nook purchased merchandise on account for $307,000: (Click the icon to view the purchases.) Cash payments on account totaled S300,000 during the year (ignore purchase discounts). The Book Nook's sales during 2018 consisted of 360,000 units of inventory for $900,000, all on account. The company uses the FIFO inventory method. Cash collections from customers were $673,000. Operating expenses totaled $250,700, of which The Bock Nook paid $189,000 in cash. The Book Nook credited Accrued Liabilities for the remainder. At December 31, The Book Nook accrued income tax expense at the rate of 35% of income before tax. Read the requiroments Requirement 1. Show how The Book Nook would compute cost of goads sold for 2018. Requirements Units Total Cost Units sold from beginning inventory Units sold from Purchase 1 Units sold from Purchase 2 Units sold from Purchase 3 Cost of goods sold 1. Show how The Book Nook would compute its cost of goods sold for 2018. 2. Prepare The Book Nock's income statement for 2018, Show subtotals for the gross profit and income before tax 3. Make summary journal entries to record The Book Nook's transactions for the year, assuming the company uses a perpetual inventory system. Explanations are not required. 330,000 4. Determine the FIFO cost of The Book Nook's ending inventory at December 31, 2018, two ways: a. Use a T-account b. Multiply the number of units on hand by the unit cost. Data Table 5. Determine The Book Nook's gross profit percentage, rate of inventory turnover and net income as a percentage of sales for the year. In The Book Nook's industry, a gross profit percentage of 40%, an inventory turnover of six times per year, and a net income percentage of 7% are considered excellent. How well does The Book Nook compare to these industry averages? Purchase 1 80,000 units costing 56,000 Purchase 2 210,000 units costing Purchase 3 130,000 units costing 147,000 104,000 Print Done Print Done Enter any number in the edit fields and then click Check