Q4.

Instructions: The following lots of a Commodity P were available for sale during the year.

Beginning inventory5 units at $61

First purchase15 units at $63

Second purchase10 units at $74

Third purchase10 units at $77

The firm uses the periodic system, and there are 20 units of the commodity on hand at the end of the year.

What is the amount of cost of goods sold for the year according to the average cost method?

a.$1,375

b.$1,380

c.$1,510

d.$1,250

Q9. On March 31, 20Y9, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture store, are as follows:

Accounts Receivable$160,250

Accumulated Depreciation-Building742,600

Administrative Expenses515,600

Building2,552,350Cash183,850

Common Stock295,050

Cost of Goods Sold3,903,350

Dividends185,250

Interest Expense10,200

Inventory1,000,900

Notes Payable254,900

Office Supplies20,350

Retained Earnings1,315,950

Salaries Payable8,050

Sales6,618,600

Selling Expenses706,050

Store Supplies86,700

A.prpare a multiple-step income statement for the fiscal year ended March 31, 20Y9. Be sure to complete the statement heading. Refer to the information given in the exercise and to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

B.What is a major advantage of the multiple-step income statement over the single-step income statement?

Labels and amount descriptions:

LabelsExpensesFor the Year Ended March 31, 20Y9March 31, 20Y9Other revenue and expense

Amount DescriptionsGross profitNet incomeNet lossOperating incomeTotal assetsTotal liabilitiesTotal expensesTotal stockholders' equity

Income Statement: A. Prpare a multiple-step income statement for the fiscal year ended March 31, 20Y9. Be sure to complete the statement heading. Refer to the information given in the exercise and to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Royal Furnishings Company

Income Statement

B. What is a major advantage of the multiple-step income statement over the single-step income statement?

The multiple-step income statement shows the relationship of gross profit to sales.

The multiple-step income statement clearly presents the value of total revenues.

The multiple-step income statement clearly presents the value of total expenses.

The multiple-step income statement is less complex to prepare.