# chapter 7 - 7-1GOODMAN’S JEWELRY WHOLESALERSSchedule of...

This preview shows pages 1–3. Sign up to view the full content.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 7-1GOODMAN’S JEWELRY WHOLESALERSSchedule of Gross ProfitFor the Year Ended December 31, 20X8(In Thousands)Gross sales\$985Deduct: Sales returns and allowances\$40Cash discounts on sales545Net sales940Cost of goods sold:Inventory, December 31, 20X7\$103Add: Gross purchases\$650Deduct: Purchase returns and allowances\$27Cash discounts on purchases633Net purchases617Add Freight-in50Cost of merchandise acquired667Cost of goods available for sale770Deduct: Inventory, December 31, 20X8185Cost of goods sold585Gross profit\$3557-3Amounts are in millions of dollars.PerpetualPeriodicAccounts receivable*19Accounts receivable19Sales revenue19Sales revenue19Cost of goods sold15No entryMerchandise inventory15* Could be a debit to cash if sales were for cash.7-4Cost of Goods Available = £21,400(8,000 + 4,200 + 4,400 + 2,300 + 2,500)LIFO Ending Inventory=(4,000 @ £2) + (1,500 @ £2.10) = £11,150FIFO Ending Inventory=1,000 @ £2.50=£ 2,5001,000 @ £2.30=2,3002,000 @ £2.20=4,4001,[email protected] £2.10=3,1505,500£12,350Weighted average=£21,400/10,000=£ 2.14 per unitEnding inventory5,500 @ £2.14=£11,770Cost of Goods Sold Calculation:WeightedLIFO...
View Full Document

{[ snackBarMessage ]}

### Page1 / 8

chapter 7 - 7-1GOODMAN’S JEWELRY WHOLESALERSSchedule of...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online