Question

Exercise 9-5 (Part Level Submission) Presented below is information related to Sage Enterprises. Jan. 31 Feb. 28 Mar. 31 Apr. 30 Inventory at cost $17,550 $17,667 $19,890 $16,380 Inventory at LCNRV 16,965 14,742 18,252 15,561 Purchases for the month 19,890 28,080 31,005 Sales for the month 33,930 40,950 46,800 Collapse question part (a) Partially correct answer. Your answer is partially correct. Try again. From the information, prepare (as far as the data permit) monthly income statements in columnar form for February, March, and April. The inventory is to be shown in the statement at cost; the gain or loss due to market fluctuations is to be shown separately (using a valuation account). (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Answer 1

	February	March	April
Sales revenue	33,930	40,950	46,800
Cost of goods sold
Inventory, beginning	17,550	17,667	19,890
Purchases	19,890	28,080	31,005
Cost of goods available	37440	45747	50895
Inventory, ending	17,667	19,890	16,380
Cost of goods sold	19773	25857	34515
Gross profit	14157	15093	12285
Gain (loss) due to fluctuations of inventory	(2340)	1287	819

Cost of goods available = Inventory, beginning + purchase

Cost of goods sold = Cost of goods available+ Inventory, ending

Gross profit = Sales revenue- Cost of goods available

	Jan. 31	Feb. 28	Mar. 31	Apr. 30
Inventory at cost	17,550	17,667	19,890	16,380
Inventory at LCNRV	16,965	14,742	18,252	15,561
Allowance amount needed to reduce inventory to NRV	585	2925	1638	819
Gain (loss) due to market fluctuations of inventory		(2340) (585-2925)	1287 (2925-1638)	819 (1638-819)