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RWP6-1 (Algo) Great Adventures Continuing Case

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Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet wont damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2025. All watches are sold for $499 each.

July 17	Purchased 49 watches for $7,301 ($149 per watch) on account.
July 31	Sold 39 watches for $19,461 cash.
August 12	Purchased 39 watches for $6,201 ($159 per watch) cash.
August 22	Sold 29 watches for $14,471 on account.
September 19	Paid for watches purchased on July 17.
September 27	Receive cash of $15,600 for watches sold on account on August 22.
October 27	Purchased 79 watches for $13,351 ($169 per watch) cash.
November 20	Sold 89 watches for $44,411 cash.
December 4	Purchased 118 watches for $21,122 ($179 per watch) on account.
December 8	Sold 39 watches for $19,461 on account.

RWP6-1 (Algo) Great Adventures Continuing Case Part 1

Required:

1-a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2025, assuming Suzie uses a FIFO perpetual inventory system to account for inventory. 1-b. Prepare the gross profit section of a partial income statement for transactions related to MU watches.