Assume that on September 1,Office Depothad an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred.

Sept. 6Purchased calculators fromCraneCo. at a total cost of $1,610, terms n/30.9Paid freight of $40on calculators purchased fromCraneCo.10Returned calculators toCraneCo. for $52credit because they did not meet specifications.12Sold calculators costing $580for $760to Fryer Book Store, terms n/30.14Granted credit of $45to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $32.20Sold calculators costing $650for $800to Heasley Card Shop, terms n/30.

Journalize the September transactions.(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Suppose in its income statement for the year ended June 30, 2022,The Clorox Companyreported the following condensed data (dollars in millions).

Salaries and wages expenses$460

Research and development expense$114Depreciation expense

90Income tax expense328Sales revenue

5,230Loss on disposal of plant assets46Interest expense

161Cost of goods sold2,500Advertising expense499Rent expense

105Sales returns and allowances230Utilities expense

60

Assume a tax rate of34%.

(a)

Prepare a multiple-step income statement.(Round answers to 0 decimal places, e.g. 15,222.)

The Clorox Company

Income Statement

choose the accounting period

June 30, 2022

For the Year Ended June 30, 2022

For the Month Ended June 30, 2022

Calculate the gross profit rate and the profit margin.(Round answers to 1 decimal place, e.g. 15.2%.)

Gross profit rate enter percentages rounded to 1 decimal place

%Profit margin enter percentages rounded to 1 decimal place

%

Assume the marketing department has presented a plan to increase advertising expenses by $340million. It expects this plan to result in an increase in both net sales and cost of goods sold of25%. (Hint: Increase both sales revenue and sales returns and allowances by25%.) Redo parts (a) and (b) and discuss whether this plan has merit. (Assume a tax rate of 34%, and round all amounts to whole dollars.)

Prepare a multiple-step income statement.(Round answers to 0 decimal places, e.g. 15,222.)

The Clorox Company

Income Statement

choose the accounting period

For the Year Ended June 30, 2022

For the Month Ended June 30, 2022

June 30, 2022

(amounts in millions)

select an opening name for section one

Dividends

Net Income / (Loss)

Retained Earnings, July 1, 2008

Retained Earnings, June 30, 2009

Sales Revenues

Total Revenues

Net Sales

Gross Profit

Operating Expenses

Total Operating Expenses

Income Before Income Taxes

Other Revenues and Gains

Other Expenses and Losses

Income From Operations

Sales

Calculate the gross profit rate and the profit margin.(Round answers to 1 decimal place, e.g. 15.2%.)

Gross profit rate enter percentages rounded to 1 decimal place

%Profit margin enter percentages rounded to 1 decimal place

BlossomWarehouse distributes hardback books to retail stores and extends credit terms of4/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred.

June 1Purchased books on account for $2,355(including freight) from Catlin Publishers, terms4/10, n/30.3Sold books on account to Garfunkel Bookstore for $1,200. The cost of the merchandise sold was $700.6Received $55credit for books returned to Catlin Publishers.9Paid Catlin Publishers in full.15Received payment in full from Garfunkel Bookstore.17Sold books on account to Bell Tower for $1,400, terms of4/10, n/30. The cost of the merchandise sold was $900.20Purchased books on account for $900from Priceless Book Publishers, terms2/15, n/30.24Received payment in full, less discount from Bell Tower.26Paid Priceless Book Publishers in full.28Sold books on account to General Bookstore for $2,100. The cost of the merchandise sold was $950.30Granted General Bookstore $120credit for books returned costing $90.

Journalize the transactions for the month of June forBlossomWarehouse, using a perpetual inventory system.(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Buffalo Industriesuses a periodic inventory system. Its records show the following for the month of May, in which68units were sold.

Date

Explanation

Units

Unit Cost

Total Cost

May 1Inventory35

$9

$315

15Purchase25

10

250

24Purchase40

11

440

Total100

$1,005

(a)

Calculate the weighted-average unit cost.(Round answer to 3 decimal places, e.g. 5.125.)

Weighted-average unit cost$

Enter the Weighted-average unit cost in dollars

Calculate the ending inventory at May 31 using the FIFO, LIFO and average-cost methods.(Round answers to 0 decimal places, e.g. 125.)

FIFO

LIFO

AVERAGE-COST

The ending inventory at May 31$

Enter a dollar amount

$

Enter a dollar amount

The following information is available forRiverbed Corpfor three recent fiscal years.

2022

2021

2020

Inventory$555,000$564,000$340,000Net sales1,865,0001,800,0001,345,000Cost of goods sold1,454,7001,220,400951,000

(a)

Calculate the inventory turnover, days in inventory, and gross profit rate for 2022 and 2021.(Round inventory turnover to 1 decimal place, e.g. 5.2, days in inventory to 0 decimal places, e.g. 125 and gross profit rate to 1 decimal place, e.g. 5.2%.)

Bramble Corp.markets CDs of numerous performing artists. At the beginning of March,Bramblehad in beginning inventory2,700CDs with a unit cost of $6. During March,Bramblemade the following purchases of CDs.

March 52,000@$7March 214,600@$9March 133,700@$8March 262,000@$10

During March11,900units were sold.Brambleuses a periodic inventory system.

(a)

Determine the cost of goods available for sale.

The cost of goods available for sale$

enter the cost of goods available for sale in dollars

Calculate Average Cost.(Round answer to 3 decimal places, e.g. 5.125.)

Average Cost$

enter an average cost in dollars

Determine (1) the ending inventory and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost).(Round answers to 0 decimal places, e.g. 125.)

FIFO

LIFO

AVERAGE-COST

The ending inventory$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

The cost of goods sold$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

Which cost flow method results in (1) the highest inventory amount for the balance sheet and (2) the highest cost of goods sold for the income statement?

(1)select a method which

Average-cost

FIFO

LIFO

produces the highest inventory amount.(2)select a method which

Average-cost

FIFO

LIFO

produces the highest cost of goods sold.