Great Adventures Continuing Case

[The following information applies to the questions displayed below.]

Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet wont damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2025. All watches are sold for $502 each.

July 17	Purchased 52 watches for $7,904 ($152 per watch) on account.
July 31	Sold 42 watches for $21,084 cash.
August 12	Purchased 42 watches for $6,804 ($162 per watch) cash.
August 22	Sold 32 watches for $16,064 on account.
September 19	Paid for watches purchased on July 17.
September 27	Receive cash of $10,200 for watches sold on account on August 22.
October 27	Purchased 82 watches for $14,104 ($172 per watch) cash.
November 20	Sold 92 watches for $46,184 cash.
December 4	Purchased 104 watches for $18,928 ($182 per watch) on account.
December 8	Sold 42 watches for $21,084 on account.

Great Adventures Continuing Case Part 1

Required:

1-a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2025, assuming Suzie uses a FIFO perpetual inventory system to account for inventory. 1-b. Prepare the gross profit section of a partial income statement for transactions related to MU watches.

Sales Revenue

Costs of Goods Sold

Ending Inventory

and Patrial Income statement needing Gross profit