understateme a. the cost of sales for the first six months b. the current assets at June 30, 2017 of 2017. Elemen c pro Unit Sales Price 3,76 P7-4 Reporting the Effects of Inventory Costing Methods on Financial Statement Evaluating Inventory Management (AP7-2) Kramer Corp. reported the following sale and purchase transactions related to a January 2017 Date Transaction Jan. 1 Beginning inventory Jan. 3 Sale on account Jan. 6 Purchase on account Jan. 8 Sale on account Jan. 9 Sale on account Jan. 15 Sales returned due to damage, $240 (two units that were sold on January q). The units Unit Cost Quantity 5 units 3 units 11 units 4 units 5 units $90 $120 95 120 120 were in very poor condition and were destroyed. Kramer Corp, uses a perpetual inventory system and the FIFO inventory costing method. Required: 1. Compute net sales and gross profit for January 2017. 2. Determine the inventory turnover ratio and the average days to sell inventory for Januar and explain what the numbers mean. on January 8, and the sales return on January 15. weighted-average cost method. 3. Prepare the journal entries to record the purchase transaction on January 6, the sale tra 4. Compute the cost of sales for January 2017, assuming for this part only that Kramer use P7-5 Analyzing and Internrnt