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Unformatted text preview: M7-2Inventory (+A)2,880Cash (-A)2,880The $260 interest expense is not a proper cost – it is recorded as a prepaid expense.E7-2CASE ACASE BCASE CNet sales revenue$7,950$5,500$5,920Beginning inventory$11,000$6,500$4,000Purchases5,0008,7709,420Goods available16,00015,27013,420Ending inventory10,25011,2208,020COGS5,7504,0505,400Gross profit2,2001,450520Expenses1,3001,950520Pretax income$900$(500)$0E7-8SCORESBY IncorporatedIncome StatementFor the Year Ended December 31, 2009CASE ACASE BFIFOLIFOSales Revenue$728,000$728,000Cost of Goods Sold:Beginning Inventory56,00056,000Purchases281,000281,000Goods Available337,000337,000Ending Inventory128,000101,000COGS209,000236,000Gross Profit519,000492,000Expenses500,000500,000Pretax Income$19,000$(8,000)Sales Revenue: [(8,000 * 29) + (16,000 * 31)] = 728,000Goods Available: UNITSUNIT COSTTOTALBeginning Inventory7,000$8$56,000Purchase March 519,0009171,000Purchase September 1910,00011110,000Goods Available36,000$337,000Ending Inventory: Case AFIFO(10,000 * 11) = $110,000...
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- Spring '07
- Revenue, pretax income, inventory purchases goods