Continuing cookie chronicle 53 note this is a

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Chapter 26 / Exercise 26-6
Accounting Using Excel for Success
Reeve/Warren
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Continuing Cookie Chronicle53(Note:This is a continuation of the Cookie Chronicle from Chapters 1 through 5.)CCC6Natalie is busy establishing both divisions of her business (cookie classes and mixer sales)and completing her business degree. Her goals for the next 11 months are to sell one mixer permonth and to give two to three classes per week.The cost of the fine European mixers is expected to increase. Natalie has just negotiated newterms with Kzinski that include shipping costs in the negotiated purchase price (mixers will beshipped FOB destination).Assume that Natalie has decided to use a periodic inventory system andnow must choose a cost flow assumption for her mixer inventory.The following transactions occur in February to May 2008.Feb.2Natalie buys two deluxe mixers on account from Kzinski Supply Co. for $1,100 ($550 each), FOB destination, terms n/30.16She sells one deluxe mixer for $1,050 cash.25She pays the amount owed to Kzinski.Mar.2She buys one deluxe mixer on account from Kzinski Supply Co. for $567,FOB destination, terms n/30.30Natalie sells two deluxe mixers for a total of $2,100 cash.31She pays the amount owed to Kzinski.Apr.1She buys two deluxe mixers on account from Kzinski Supply Co. for $1,122 ($561 each), FOB destination, terms n/30.13She sells three deluxe mixers for a total of $3,150 cash.30Natalie pays the amounts owed to Kzinski.May 4She buys three deluxe mixers on account from Kzinski Supply Co. for $1,720 ($573.33 each), FOB destination, terms n/30.27She sells one deluxe mixer for $1,050 cash.Instructions(a)Determine the cost of goods available for sale. Recall from Chapter 5 that at the end ofJanuary, Cookie Creations had three mixers on hand at a cost of $545 each.(b)Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profitrate under each of the following methods: LIFO, FIFO, and average cost.CONTINUING COOKIE CHRONICLE
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Accounting Using Excel for Success
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Chapter 26 / Exercise 26-6
Accounting Using Excel for Success
Reeve/Warren
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