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Please complete the Q4. 1. Max has provided you with information below and asked you to calculate the COS and Gross Profit for the two
Please complete the Q4.
1. Max has provided you with information below and asked you to calculate the COS and Gross Profit for the two items listed. Max began the month with no stock of either product. Max's latest stock take revealed that there were 62 units of Product 1 and 8 units of Product 2 still on hand. Product 1 - Clean Power kits are a spare parts option to increase the energy output and fuel economy of existing engines. Each unit now sells for $199 Date Purchases (units) Sales (units) 100 @ $80 15 45 35 @ $90 30 25 @ $105 August 3 6 9 11 14 16 18 21 24 26 28 29 31 15 30 45 a $100 60 a $120 50 7 (5) @ $100 (Returned) TOTAL 260 192 Part 1. DIY Clean Air Turbo 2) 3 92,400 (4.400) 88,000 + Income statement (FIFO) DIY clean Air Turbo System Kit For the month ended 31 August Clean Power Kits Income Sales revenue 1) 38,208 Less: sales returns 0 Net Sales 38,208 Less: cost of sales Beginning inventory 0 plus: Purchases 4) 25,475 less: Purchases returns 6) (500) Goods available for sale 24,975 less: cost of ending inventory 7) 7,400 Net cost of sales 17,575 Gross profit $20,633 5) 0 50,448 0 50,448 9,228 41.220 $46,780 8) + 3. Complete the stock cards provided below using the same information Max above as needed. FIFO * Item: Clean Power kits Purchases (in) Sales (Out) Balance Date Quantity Unit Total Quantity Unit Total Quantity Unit Total Cost Cost Cost Cost Cost Beginning balance Aug 3 100 80 8,000 100 80 8,000 Aug 6 15 80 1,200 85 80 6.800 Aug 9 45 80 3,600 40 80 3,200 Aug 11 35 90 3,150 40 35 80 90 3,200 3,150 Aug 14 30 80 2,400 10 35 80 90 800 3,150 Aug 16 25 105 2,625 10 35 25 80 90 105 800 3.150 2,625 + Aug 18 10 5 80 90 800 450 30 25 90 105 270 2,625 Aug 21 30 90 2,700 25 105 2,625 Aug 24 45 100 4,500 25 45 105 100 2,625 4,500 Aug 26 60 120 7,200 25 45 60 105 100 120 2,625 4,500 7,200 Aug 28 25 25 105 100 2,625 2,500 20 60 100 120 2,000 7,200 Aug 29 7 100 700 13 60 100 120 1,300 7,200 Aug 31 (5) 100 (500) 8 60 100 120 800 7,200 While you were busy doing the calculations Max has had one his helpers physically count the stock twice to make sure his earlier stock take was correct. The results of this count were that there are only 61 Clean Power Kits on hand. 4. Show the General Joumal entry(s) (and any calculations) to display the impact of this count on the information you have provided for Max in Parts 1 and 3. DATE PARTICULARS P/R DEBIT S CREDIT SStep by Step Solution
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