# B calculated in requirement 1 4 units sold using the

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(b) Calculated in Requirement 1.
4 units soldusing the FIFO using the LIFO using the weighted-the nearest cent
E6A-29Requirements1.Supply the missing amounts in the preceding table.2.Solution:Requirement 1Calculations:(a)Sales Revenue - COGS = Gross Profit1010003100070000(b)Sales Revenue - COGS = Gross Profit9600040000136000(c)Beginning MI + Net Purchases - COGS = Ending MI250000950009600024000(d)Beginning Mi + Net Purchases - COGS = Ending MI52000620002200032000Prepare the income statement for the year ended December 31, 2015, forRed Company, which uses the periodic inventory system. Include a complete heading and show the full computation of cost of goods sold. Red’s operating expenses for the year were \$11,000.
(e)Net Sales Revenue - COGS = Gross Profit930006200031000(g) Note: calculate (g) before (f)Net Sales Revenue - COGS = Gross Profit860004900037000(f)Beginning MI + Net Purchases - COGS = Ending MI1200037000500030000
Requirement 2RED COMPANYIncome Statement Year Ended December 31, 2015Net Sales\$ 101,000 Cost of Goods Sold:Beginning Merchandise Inventory\$ 22,000 Net Cost of Purchases65,000 Cost of Goods Available for Sale87,000 Less: Ending Merchandise Inventory17,000 Cost of Goods Sold70,000 Gross Profit31,000 Operating Expenses11,000 Net Income\$ 20,000