You are given the following information for Crane Company for the month ended November 30, 2021:

Date

Description

Units Unit Price

Nov. 1

Beginning inventory

63 $48

9

Purchase

110 45

15

Sale

(120)

22

Purchase

155 42

29

Sale

(160)

30

Purchase

49 41

Crane Company uses a perpetual inventory system. All sales and purchases are on account.

Calculate the cost of goods sold and the ending inventory using FIFO.

Cost of goods sold $

Ending inventory $

eTextbook and Media

List of Accounts

Assume the sales price was $66 per unit for the goods sold on November 15, and $60 per unit for the sale on November 29. Prepare journal entries to record the November 22 purchase and the November 29 sale. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

Nov. 22

(To record purchase on account.)

Nov. 29

(To record sales on account.)

Nov. 29

(To record cost of goods sold.)

eTextbook and Media

List of Accounts

Calculate gross profit for November.

Gross profit

$

eTextbook and Media

List of Accounts

Assume that at the end of November, the company counted its inventory. There are 95 units on hand. What journal entry, if any, should the company make to record the shortage? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

(To record cost of goods sold.)

eTextbook and Media

List of Accounts

If the company had not discovered this shortage, what would be overstated or understated on the balance sheet and income statement and by what amount?

The

on the balance sheet would be

by $ , as well as the

account by the same amount.

The

on the income statement would be

by $ .