Question

Name
1) On December 31, 3017, Harrison Company had the following balance sheet:
Harrison Company
Balance Sheet
At December 31, 2017
Cash				$4,800	Accounts Payable		$3,000
Accounts Receivable				$3,900
Inventory - Note 1				$1,800
Equipment - Note 2			25000		Common Stock Par Value $1,		$8,000
Accumulated Depreciation			-5000		Authorized 100,000 shares,
				$20,000	outstanding 8,000 shares
					Additional Paid in Equity		$2,000
					Total Pd in Equity		$10,000
					Retained Earning		$17,500
Total Assets				$30,500	Total Liabilities &
					Stockholders Equity		$30,500
Notes to the Financial Statement:
	Note 1: Inventory - Harrison Company uses the FIFO method of inventory. The inventory
	of $1,800 consisted of 3,000 units at a cost of $.60 per unit.
	Note 2: As noted above, total Common Stock, $1.00 par authorized in the Corporate Charter are 100,000 shares.
	As of 12/31/17 8,000 shares are outstanding
During the first six months of 2018, Harrison Company had the following transactions:
	1)	On January 5, purchased 4,000 units of inventory at a cost of $.72 per unit on account.
	2)	On February 8, sold 4,400 units of inventory at $.90 per unit on account.
	3)	On April 12, purchased 2,200 units of inventory at a cost of $.75 per unit on account.
	4)	On June 14, sold 2,000 units of inventory at $.95 per unit
REQUIREMENTS:
	1)	Determine the total sales for Harrison Company for the period ending June 30, 2018
		in both units and dollars.
		SALES:			Total		Total
					Units		$
	2)	Complete the following inventory schedule to determine goods available for sale,
		both in units & dollars
			Date	Units	Unit Cost		Extension $
		Beginning Inventory			$0.60
		Purchases
GOODS AVAILABLE FOR SALE				-
	3)	Determine the Cost of Goods Sold Schedule based on the FIFO method of inventory,
		to the nearest $ is acceptable.
				FIFO
				Units	Unit Cost		Extension $
		opening Balance
Cost of Goods Sold
	4)	Determine the Gross Profit
		GROSS PROFIT

Answer 1

Sales
	Units	Unit Price	Total
Feb-08	4400	$                         0.90	$               3,960
Jun-14	2000	$                         0.95	$               1,900
Total	6400		$              5,860

	Date	Units	Unit Cost	Extension
Beginning Inventory	Jan-01	3000	$                 0.60	$               1,800
Purchases	Jan-05	4000	$                 0.72	$               2,880
	Apr-12	2200	$                 0.75	$               1,650
Goods available for sale	9200		$              6,330

Cost of Goods Sold
		Units	Unit Cost	Extension
	Jan-01	3000	$                 0.60	$               1,800
	Jan-05	3400	$                 0.72	$               2,448
Total		6400		$              4,248

Gross Profit = Sales Revenue - Cost of Goods Sold
= $5860 - 4248 = $1612