Kramer Corp. reported the following sale and purchase transactions related to a specific product in January 2014:
Kramer Corp. uses a periodic inventory system and the FIFO inventory costing method.
1. Compute net sales and gross profit for January 2014.
2. Determine the inventory turnover ratio and the average days to sell inventory for January 2014, and explain what the numbers mean.
3. Prepare the journal entries to record the purchase transaction on January 6, the sale transaction on January 8, and the sales return on January 15.
4. Compute the cost of sales for January 2014, assuming for this part only that Kramer uses a perpetual inventory system and the weighted- average cost method.

  • CreatedAugust 04, 2015
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