Chapter $6$ Homework

Submit your answers in CANVAS before it is due

Use the following to answer questions $16$

Case $1$ Case $2$ Case $3$ Case $4$

Beginning inventory $$50,000$ $$125,000$ $$35,000?$

Ending inventory $?80,00050,00042,000$

Purchases $690,000?725,000852,000$

Cost of goods sold $720,000800,000?870,000$

$1.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$ For case $1,$ determine goods available for sale

$2.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$For case $1,$ determine ending inventory

$3.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$For case $2,$ determine goods available for sale

$4.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$ For case $2,$ determine Purchases

$5.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$For case $3,$ determine cost of goods sold

$6.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$ For case $4,$ determine beginning inventory

Use the following to answer questions $717$

During September, the company sells $480$ watches for $$300\mathrm{.}00$ each. The company has the following inventory purchase

transactions for September:

Date Transaction # of Units Unit cost Total Cost

$1-$Sep Beginning Inventory $30$ $$145\mathrm{.}00$ $$4,350$

$4-$Sep Purchase $350$ $$150\mathrm{.}0052,500$

$24-$Sep Purchase $120$ $$152\mathrm{.}0018,240$

$500$ $$75,090$

$7.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$What were company$$s sales for the period?

For questions $8-10$ assume the company uses First$-$in$,$ First$-$out $($FIFO$)$ inventory valuation.

$8.$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_$Calculate ending inventory $($FIFO$)$

Chapter $6$ Page $6-2$

$9.$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_$Calculate cost of goods sold $($FIFO$)$

$10.$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_$ Calculate gross profit $($FIFO$)$

For questions $11-13$ assume the company uses Last$-$in$,$ First$-$out $($LIFO$)$ inventory valuation.

$11.$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_$Calculate ending inventory $($LIFO$)$

$12.$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_$Calculate cost of goods sold $($LIFO$)$

$13.$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_$ Calculate gross profit $($LIFO$)$

For questions $14-16$ assume the company uses Weighted Average cost inventory valuation.

$14.$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_$Calculate ending inventory $($WA$)$

$15.$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_$Calculate cost of goods sold $($WA$)$

$16.$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_$Calculate gross profit $($WA$)$

$17.$ Based on the above, which method would show a larger net income number? $($FIFO$,$ LIFO or WA$)$

Use the following to answer questions $1821$

The company begins the year with inventory of $$50,000$ and ends the year with inventory of $$33,000.$ During the year,

the following amounts are recorded:

Sales $$900,000$

Sales returns & allowances $10,000$

Sales discounts $10,000$

Purchases $500,000$

Operating expenses $354,000$

$18.$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_$Net Sales

$19.$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_$Calculate cost of goods sold

$20.$ $$\_\_\_\_\_\_\_\_\_\_\_\_\_$ Gross profit

$21.\_\_\_\_\_\_.\_\_\%$ Gross profit ratio $($rounded to once decimal place$)$

Chapter $6$ Page $6-3$

Use the following to answer questions $2229$

The company reports the following amounts in its December $31,20$XD income statement:

Sales discounts $$8,000$ Cost of goods sold $$420,000$

Net sales $800,000$ Salaries expense $200,000$

Utilities expense $15,000$ Advertising expense $70,000$

Interest expense $10,000$ Effective income tax rate $20\%$

$22.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$Determine Sales

$23.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$Determine gross profit

$24.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$Determine operating expenses

$25.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$Determine Income before income taxes $($IBT$)$

$26.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$Determine Income tax expense

$27.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$Determine net income

$28.\_\_\_\_\_\_.\_\_\_\%$ Calculate the company$$s gross profit ratio $($round to one decimal place$).$

$29.\_\_\_\_\_\_\_\_\_\_\_\_\_$Comparing the company$$s common sized income statement with its competitor. The competitor$$s

gross margin is $45\mathrm{.}0\%,$ which company is doing better?

Chapter $6$ Page $6-4$

Use the following to answer questions $3035$

Find the missing amounts:

Case $1$ Case $2$ Case $3$

Net Sales $$800,000$ $$750,000?$

COGS $?400,000425,000$

Gross profit $370,000?325,000$

Operating expense $220,000295,000?$

Operating income $??88,000$

$30.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$For case $1,$ determine cost of goods sold

$31.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$For case $1,$ determine operating income $($include $-$ if needed$)$

$32.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$For case $2,$ determine gross profit

$33.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$For case $2,$ determine operating income $($include $-$ if needed$)$

$34.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$For case $3,$ determine net sales

$35.$ $$\_\_\_\_\_\_\_\_\_\_\_\_$For case $3,$ determine operating expense

$36.$ Inventory records for the company revealed the following:

Date Transaction

Number

of Units

Unit

Cost

Apr. $1$ Beginning inventory $60$ $$70\mathrm{.}00$

Apr. $4$ Purchase $140$ $$75\mathrm{.}00$

The company sold $195$ units of inventory during the month. Ending inventory assuming LIFO would be $$\_\_\_\_\_\_\_\_\_\_\_\_$

Chapter $6$ Page $6-5$

$37.$ Inventory records for the company revealed the following:

Date Transaction

Number

of Units

Unit

Cost

Mar. $1$ Beginning inventory $50$ $$80\mathrm{.}00$

Mar. $6$ Purchase $300$ $$84\mathrm{.}00$

Mar. $23$ Purchase $125$ $$85\mathrm{.}00$

The company sold $450$ units of inventory during the month. Ending inventory assuming FIFO would be $$\_\_\_\_\_\_\_\_\_\_\_$

$38.$ Inventory records for the company revealed the following:

Date Transaction

Number

of Units

Unit

Cost

Mar. $1$ Beginning inventory $20$ $$46\mathrm{.}00$

Mar. $3$ Purchase $400$ $$49\mathrm{.}00$

Mar. $23$ Purchase $80$ $$51\mathrm{.}00$

The company sold $490$ units of inventory during the month. Ending inventory assuming Weighted Average would be

$$\_\_\_\_\_\_\_\_\_\_\_$

Use the following for questions $39$ & $40$

The company provided the following data:

Beginning inventory $$25,000$

Purchases $440,000$

Gross profit $350,000$

Net sales $800,$