Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part I 1. Fill in the blanks (fill in the shaded area). Company ACompany B Company Company D 1 250 3 000 7000 S Beginning

image text in transcribed
image text in transcribed
Part I 1. Fill in the blanks (fill in the shaded area). Company ACompany B Company Company D 1 250 3 000 7000 S Beginning Inventory Inventory Purchase Cost of goods available for sale Ending Inventory Cost of goods consumed Goods used intemally Cost of goods sold 4 000 4 500 1 500 4 000 10000 8 000 2 000 5 000 4 550 700 5 900 4400 S 4 000 2. The following is the part of income statement of AAA Complete the table (Fill in the shaded area). Correct Entries Column A Column D 200 000 S 200 000 S 200 000 S 200 000 Column B Column C S 200 000 S Sales Cost of Goods Sold: Beginning Inventory Purchases Costs of Goods Available Ending Inventory 50 000 40 000 90 000 50 000 50 000 40 000 50 000 40 000 40 000 40 000 50 000 50 000 Cost of Goods Sold Gross Profit a. Calculate Cost of Goods Sold and Gross Profit for correct entries column b. Complete Column A In this column, suppose that beginning inventory is $40,000, but ending inventory remains the same ($50,000) Compared to Correct Entries, is Cost of Goods sold overstated or understated? Compared to Correct Entries, is Gross Profit overstated or understated? O C. Complete Column B. In this column, suppose that beginning inventory is $60,000 but ending inventory remains the same (S50,000) Compared to Correct Entries, is Cost of Goods sold overstated or understated? Compared to Correct Entries, is Gross Profit overstated or understated? 3 4 d. Complete Column C. In this column, suppose that ending inventory is S40,000 but beginning inventory remains the same (S50,000). 15 16 Compared to Correct Entries, is Cost of Goods sold overstated or understated? Compared to Correct Entries, is Gross Profit overstated or understated? 48 49 50 e. Complete Column D. In this column, suppose that ending inventory is S60,000, but beginning inventory remains the same ($50,000). Compared to Corect Entries, is Cost of Goods sold overstated or understated? Compared to Correct Entries, is Gross Profit overstated or understated? 52 53 Part II The following table is inventory history of AAA. Price per Unit 10 Total Cost 1 000 2 200 3 600 5 200 7 000 19 000 #ofunits Mar 1 Mar 3 Mar 4 Mar 20 Mar 21 Beginning Inventory Purchase Purchase Purchase Purchase 100 S 200 S 300 S 400 S 500 S 12 13 14 Total 1 500 During March, AAA sold 1,000 units at $20 per unit. What is the Cost of Goods Available for Sale? What is the amount of the net sale? Complete the following table based on each COGS calculation method For weighted average method, do not round up. Income Tax rate is 30% FIFO LIFO W. Average Sales Cost of Goods Sold: Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Administrative Expense Other Gain Other Losses 4 000 1 000 (1 000) 4 000 1 000 (1 000) 4 000 1 000 (1 000) Income Before Income Tax Income Tax Net Income

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_2

Step: 3

blur-text-image_3

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

Loss Control Auditing A Guide For Conducting Fire Safety And Security Audits

Authors: E. Scott Dunlap

2nd Edition

103244293X, 978-1032442938

More Books

Students also viewed these Accounting questions

Question

Describe management development.

Answered: 1 week ago

Question

Use a three-step process to develop effective business messages.

Answered: 1 week ago