Exl. Fill in the blanks (a) through (g) for the Corman Company, Inc for each of

Question

Exl. Fill in the blanks (a) through (g) for the Corman Company, Inc for each of the income statements for 2014 and 2015. Show your calculations Corman Company, Iac. Income Statements For the years ended December 31 2014 2015 Sales $10,000() Cost of goods sold Merchandise inventory (beginning) Total cost ofmerchandise purchases Merchandise inventory (ending) Cost of goods sold 750 3,623 4,875 5,000 Gross profit Operating expenses Net income 5,200 52.500 Ex2. Using the in formation given bdlow for a company that uses a perpetual inventory system, calculate the ending invemtory using weighted average. Units Unit Cost $10 12 Beginning inventory Jan. 5 purchased Jan 10 sold an. 15 purchased Jan. 13 25 sold

Explanation / Answer

1 2014 2015 Sales $10,000 10200 COGS Merchandise Inventory (Opening) 375 750 Total Cost of Merchandise purchase 3625 4875 Merchandise Inventory (Ending) 750 625 Cost of Goods Sold 3250 5000 Gross Profit $6,750 5200 Less: OperatingExpense 3750 2700 Net Income $3,000 2500 a. COGS = Merchandise Inventory (Opening) 375 Add: Total Cost of Merchandise purchase 3625 Less: Merchandise Inventory (Ending) 750 3250 b. Net Income Gross Profit $6,750 Less: OperatingExpense 3750 Net Income $3,000 c OperatingExpense Gross Profit $5,200 Less: Net Income 2500 OperatingExpense $2,700 d Merchandise Inventory (Ending) Merchandise Inventory (Opening) 750 Add: Total Cost of Merchandise purchase 4875 Less: COGS 5000 625 e Sales Cost of Goods Sold 5000 Add: Gross Profit 5200 10200 2 Calculation of Weighted Averge Cost per uit Unit Unit Cost Total Cost[Unit*Unit Cost] Beginning Inventory 100 $10 $1,000 Jan 5 purchased 40 $12 $480 Jan1 5 purchased 70 $13 $910 Total Cost 210 $2,390 Weighted Avg cost p.u = Total Cost/Total No of unit = 2390/210 units                                                                                   11.38 $ pu Closing Inventory Opening Inventory 100 Add Totapurchases [40+70] 110 Less Total Unit sold [ 60+50] 110 Closing Inventory 100 Value of closing inventory = 100*$11.38 $1,138 3 01-Jan purchased 100 units @ $10 pu 1000 05-Feb purchased 60 units @ $12 pu 720 16-Mar Sold 40unit @ 16pu $ SALES [40 units *$16] 640 Less: COGS using FIFO [ 40 units *$10] 400 Gross Profit 240 units 4 01-Jan Opening 180 05-Jan Add: Purchases 170 09-Jan Less: Sold 300 14-Jan Add: Purchases 200 20-Jan Less: Sold 150 30-Jan Add: Purchases 230 Closing Inventory 330 Cost of Closing Inventory using LIFO 30-Jan purchases [230 units*12] $2,760 14-Jan purchases [100 units*11] 1100 3860

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.