Monrose Park had the following transactions during the month of November 2018.

Nov 2 Purchased 1,000 widgets for $20 per unit on credit

Nov 5 Sold 900 widgets for $55 each for cash

Nov 10 Purchased 500 widgets for $25 per unit on credit

Nov 18 Sold 100 widgets for $60 each on credit

Nov 29 Sold 300 widgets for $50 each for cash

Monrose Park uses a perpetual inventory system and the FIFO inventory valuation method. There were no widgets in the companys opening inventory for November.

A) Prepare an excerpt of the multiple-step income statement for the month showing sales revenue, cost of goods sold, and gross profit.

B) Sales for December were $100,000 and purchases were $68,500. Using the gross profit method, estimate the closing value of inventory. Assume the gross profit margin from November will be the gross profit margin for December.

Sales Revenue		$100,000
Cost of Goods Sold
Opening Inventory
Purchases	68,500
Cost of Goods Available for Sale
Closing Inventory
Cost of Goods Sold
Gross Profit