Use the following to answer questions 1 – 6

	Case 1	Case 2	Case 3	Case 4
Beginning inventory	$85,200	$35,400	$40,000	?
Ending inventory	?	22,000	31,200	41,500
Purchases	695,000	?	447,500	856,200
Cost of goods sold	724,000	654,700	?	900,000

1. $____________ For case 1, determine goods available for sale

2. $____________For case 1, determine ending inventory

3. $____________For case 2, determine goods available for sale

4. $____________ For case 2, determine Purchases

5. $____________For case 3, determine cost of goods sold

6. $____________ For case 4, determine beginning inventory

Use the following to answer questions 7 – 17

During September, KM Company sells 9,800 watches for $300.00 each. The company has the following inventory purchase transactions for September:

Date	Transaction	# of Units	Unit cost	Total Cost
1-Sep	Beginning Inventory	300	$195.00	$58,500
4-Sep	Purchase	6,000	$198.00	1,188,000
24-Sep	Purchase	3,700	$200.00	740,000
		10,000		$1,986,500

7. $____________What were company’s sales for the period?

For questions 8 - 10 assume the company uses First-in, First-out (FIFO) inventory valuation.

8. $_____________Calculate ending inventory (FIFO)

9. $_____________Calculate cost of goods sold (FIFO)

10. $_____________ Calculate gross profit (FIFO)

For questions 11 - 13 assume the company uses Last-in, First-out (LIFO) inventory valuation.

11. $_____________Calculate ending inventory (LIFO)

12. $_____________Calculate cost of goods sold (LIFO)

13. $_____________ Calculate gross profit (LIFO)

For questions 14 - 16 assume the company uses Weighted Average cost inventory valuation.

14. $_____________Calculate ending inventory (WA)

15. $_____________Calculate cost of goods sold (WA)

16. $_____________Calculate gross profit (WA)

17. Based on the above, which method would show a larger net income number? (FIFO, LIFO or WA)

Use the following to answer questions 18 – 21

GOL Inc., begins the year with inventory of $51,200 and ends the year with inventory of $44,300. During the year, the following amounts are recorded:

Sales	$900,000
Sales returns & allowances	6,700
Sales discounts	15,000
Purchases	582,300
Operating expenses	212,000

18. $_____________Net Sales

19. $_____________Calculate cost of goods sold

20. $_____________ Gross profit

21. ___ ___. __% Gross profit ratio

Answer rating: 100% (QA)

1 1140200 Case 1 goods available for sale beginning inventory purchases 1 31200 Case 1 ending invent... View the full answer