Required information Problem 6-3B Record transactions and prepare a partial income statement using a perpetual inventory system (LO6-2, 6-5) [The following information applies to the questions displayed below.) At the beginning of June, Circuit Country has a balance in inventory of $2,150. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $1,850, terms 2/15, n/45. June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $230. June 8 Return defective radios to Radio World and receive credit, $200. June 10 Pay Radio World in full. June 11 Sell radios to customers on account, $3,300, that had a cost of $2,350. June 18 Receive payment on account from customers, $2,300. June 20 Purchase radios on account from Sound Unlimited for $2,950, terms 2/10, n/30. June 23 Sell radios to customers for cash, $4,450, that had a cost of $2,750. June 26 Return damaged radios to Sound Unlimited and receive credit of $300. June 28 Pay Sound Unlimited in full. Problem 6-3B Part 2 2. Prepare the top section of the multiple-step income statement through gross profit for the month of June. CIRCUIT COUNTRY Multiple-step Income Statement (partial) For the month of June Required information Problem 6-4B Report inventory using lower of cost and net realizable value (L06-6) [The following information applies to the questions displayed below.) A home improvement store, like Lowe's, carries the following items: Inventory Items Quantity Unit Cost Unit NRV Hammers 120 $ 7.20 $ 7.70 Saws 40 10.209 .20 Screwdrivers 120 2.20 2.80 Drills 30 25.20 22.40 1-gallon paint 150 5.70 5.20 cans Paintbrushes 170 6.20 6.70 Problem 6-4B Part 1 Required: 1. Compute the total cost of inventory. Total cost Required information Problem 6-4B Report inventory using lower of cost and net realizable value (L06-6) [The following information applies to the questions displayed below.) A home improvement store, like Lowe's, carries the following items: Inventory Items Quantity Unit Cost Unit NRV Hammers 120 $ 7.20 $ 7.70 Saws 40 10.20 9.20 Screwdrivers 120 2.20 2.80 Drills 30 25.20 22.40 1-gallon paint 150 5.70 5.20 cans Paintbrushes 170 6.20 6.70 Problem 6-4B Part 2 2. Determine whether each inventory item would be reported at cost or net realizable value, and then place that unit amount in the Lower of Cost and NRV per unit" column. Multiply the quantity of each inventory item by the appropriate cost or NRV unit amount and place the total in the Total column. (Round "Cost per Unit" to 2 decimal places.) Inventory Items Cost or NRV Lower of Cost and NRV per unit Total Hammers Saws Screwdrivers Drills 1-gallon paint cans Paint brushes Total $ 0 Required information Problem 6-4B Report inventory using lower of cost and net realizable value (LO6-6) [The following information applies to the questions displayed below.) A home improvement store, like Lowe's, carries the following items: Inventory Items Quantity Unit Cost Unit NRV Hammers 120 $ 7.20 $ 7.70 Saws 40 10.20 9.20 Screwdrivers 120 2.20 2.80 Drills 25.20 22.40 1-gallon paint 150 5.70 5.20 cans Paintbrushes 170 6.20 6.70 30 Problem 6-4B Part 3 3. Prepare necessary entry to write down inventory from cost to net realizable value. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet
