21. From the following details, calculate gross profit for Sydney’s Sales Co. Ne

Question

21. From the following details, calculate gross profit for Sydney’s Sales Co. Net Sales Revenue $440,000 Cost of Goods Sold 250,000 Operating Expenses 75,000 Interest Revenue 7,000 A) $155,000 B) $412,000 C) $405,000 D) $190,000

22. Ryan’s Games, Inc. purchased 100 puzzles for $30 each on January 31. It purchased 170 puzzles for $25 each on February 28. It sold 170 puzzles for $70 each from March 1 through December 31. If Ryan’s Games uses the first-in, first-out inventory (FIFO) costing method, what is the amount of Cost of Goods Sold on the income statement for the year ending December 31? (Assume a perpetual inventory system.) A) $3,000 B) $4,250 C) $4,750 D) $7,250

Explanation / Answer

21) Gross profit = Sales-cost of goods sold = 440000-250000 = 190000

so answer is d) $190000

22) Cost of goods sold = (100*30+70*25) = 4750

so answer is c) $4750

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