Question

In: Accounting

Question 3: Cora’s Computers uses the Periodic Inventory System and has a December 31st year-end. The...

Question 3: Cora’s Computers uses the Periodic Inventory System and has a December 31st year-end. The company began the year with inventory with a cost of $18,600. When Cora’s staff counted inventory at December 31, inventory with a cost of $22,500 were on hand. The company also had the following account balances for the year (random order, all with normal balances):

Office Supplies Expense 4,700

Purchases $199,500

Sales Discounts 2,400

Advertising Expense 11,300

Interest Income 2,000

Freight In 16,400

Freight Out 12,200

Sales person Salaries 61,500

Sales Returns and Allowances 10,200

Loss on Sale of PP&E 550 Purchase Returns and Allowances 9,800

Sales Revenue 325,000 Purchase Discounts

1,800 Management Salaries 19,800 Required:

1) Prepare a Multi-Step Income Statement (full detail) for the year-ended December 31, 2020.

2) Calculate: a) Gross Margin % b) Inventory Turnover c) Days in Inventory.

Solutions

Expert Solution


Related Solutions

Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December...
Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: UnitsUnit CostInventory, December 31, prior year6,300For the current year:Purchase, March 518,30011Purchase, September 199,3007Sale ( $30 each)8,500Sale ( $32 each)15,300Operating expenses (excluding income tax expense)$393,000Required: Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. (Loss amounts should...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1:                                                  Units  Cost  Inventory, December 31, prior year 2,000 Unit $3For the current year: Purchase, March 21                     5,190  5Purchase, August 1   ...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Units Unit Cost Inventory, December 31, prior year 1,890 $ 5 For the current year: Purchase, March 21 5,080 7 Purchase, August 1 3,000 8   Inventory, December 31, current year 4,180 Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Inv Dec 31 prior year Units 2000 - $5 (unit cost) Puchase march 21 : 5000 - $6 Purchase August 1: 3000 - $8 Inventory December 31 current year 4000: (blank) Ending inventory (FIFO/LIFO/AVG COST) Cost of goods sold (FIFO/LIFO/Avg Cost)
Emily Company uses a periodic inventory system. At the end of the annual accounting period, December...
Emily Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Units Unit Cost Inventory, December 31, prior year 2,890 $ 12 For the current year: Purchase, April 11 8,860 13 Purchase, June 1 7,930 18 Sales ($55 each) 10,860 Operating expenses (excluding income tax expense) $ 191,500 2. Compute the difference between the pretax income and the ending inventory...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Units Unit Cost Inventory, December 31, prior year 2,000 $ 5 For the current year: Purchase, March 21 5,000 6 Purchase, August 1 3,000 8 Inventory, December 31, current year 4,000 Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Units Unit Cost Inventory, December 31, prior year 1,960 $ 5 For the current year: Purchase, March 21 5,020 7 Purchase, August 1 2,900 8   Inventory, December 31, current year 4,080 Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December...
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 1: Units Unit Cost Inventory, December 31, prior year 1,940 $ 4 For the current year: Purchase, March 21 5,110 6 Purchase, August 1 2,860 7   Inventory, December 31, current year 4,160 Required: Compute ending inventory and cost of goods sold for the current year under FIFO, LIFO, and average...
Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December...
Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Units Unit Cost Inventory, December 31, prior year 6,000 $ 10 For the current year: Purchase, March 5 18,000 8 Purchase, September 19 9,000 4 Sale ($25 each) 8,800 Sale ($33 each) 15,000 Operating expenses (excluding income tax expense) $ 390,000 1. Prepare a separate income statement through pretax...
Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December...
Givoly Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Units Unit Cost Inventory, December 31, prior year 7,900 $ 11 For the current year: Purchase, March 5 19,900 9 Purchase, September 19 10,900 5 Sale ($27 each) 8,900 Sale ($29 each) 16,900 Operating expenses (excluding income tax expense) $ 409,000 1. Prepare a separate income statement through pretax...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT