Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

asap please Kramer Corp. reported the following sale and purchase transactions related to a specific product in January 2021: Date Unit Cost $40 Unit Sales

asap please
image text in transcribed
image text in transcribed
Kramer Corp. reported the following sale and purchase transactions related to a specific product in January 2021: Date Unit Cost $40 Unit Sales Price Jan. 1 Jan. 3 Transaction Beginning inventory Sale on account Purchase on account. Quantity 12 units 10 units $160 Jan. 6 18 units 45 Sale on account 11 units. 160 Jan. 8. Jan. 9 Jan. 15 Sale on account 5 units 160 Sales returned due to damage, $320 (two units that were sold on January 9). The units were in very poor condition and were destroyed. Kramer Corp. uses a perpetual inventory system and the FIFO inventory costing method. Required: 1. Compute net sales and gross profit for January 2021. Net sales $ 3,840 Gross profit 2. Determine the inventory turnover ratio and the average days to sell inventory for January 2021. (Do not round your intermediate calculations. Round the final answers to 2 decimal places.) Inventory turnover ratio Average days to sell inventory days 4. Compute the cost of sales for January 2021, assuming for this part only that Kramer uses the weighted-average cost method. (Do not round Intermediate calculations. Round the final answer to the nearest dollar amount.) Total cost of sales

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Deferred Income Taxes

Authors: Bobby Carmichael

2nd Edition

1119724562, 9781119724568

More Books

Students also viewed these Accounting questions

Question

a. What is the name of the university?

Answered: 1 week ago