In: Finance
The assignment is to prepare an accrual basis report of sales along with detailing the cost of goods sold.
SPC Flash Drive Company
September Report
Net Sales: |
$ |
Minus cost of goods sold: |
|
Beginning inventory |
$ |
Add purchases |
$ . |
Goods available for sale |
$ |
Subtract ending inventory |
$ |
Cost of goods sold |
$ . |
Net Income (Gross Profit) |
$ |
Case Study Specific
In September, the SPC Flash Drive Company had the following transactions relating to sales and cost of goods sold:
Calculations are shown in the table below. Information filled from the question above. Formula used in the sheet are as follows (column names are used in the formula below)
Net Sales = Units Sold * Sale Rate
Begin Inv Value = Beg Inv Units * Inv Rate
Purchase Inv Value = Purchase Inv Units * Purchase Inv Rate
Inventory available for Sale = Begin Inv Units + Purchase Inv Units
Goods available for Sale Value = Begin Inv Value + Purchase Inv Value
Ending Inventory Units = Inventory available for Sale - Units Sold
Ending Inventory Value = Ending Inventory Units * Purchase Inv Rate
Cost of Goods Sold = Goods available for Sale Value - Ending Inventory Value
Net Income = Net Sales - Cost of Goods Sold
Model | Units Sold | Sale Rate | Net Sales | Begin Inv Units | Inv Rate | Begin Inv Value | Purchase Inv Unit | Purchase Inv Rate | Purchase Inv Value | Inventory Available for Sale | Goods Available for Sale Value | Ending Inventory Units | Ending Inv Value | Cost of Goods Sold | Net Income |
Model 1 gig | 1,621 | $1.65 | $2,674.65 | 3,200 | $0.59 | $1,888.00 | 1,600 | $0.59 | $944.00 | 4,800 | $2,832.00 | 3,179 | $1,875.61 | $956.39 | $1,718.26 |
Model 4 gig | 376 | $4.21 | $1,582.96 | 845 | $1.45 | $1,225.25 | 800 | $1.45 | $1,160.00 | 1,645 | $2,385.25 | 1,269 | $1,840.05 | $545.20 | $1,037.76 |
Model 8 gig | 301 | $7.56 | $2,275.56 | 900 | $2.56 | $2,304.00 | 300 | $2.56 | $768.00 | 1,200 | $3,072.00 | 899 | $2,301.44 | $770.56 | $1,505.00 |
Model 16 gig | 175 | $14.95 | $2,616.25 | 550 | $4.90 | $2,695.00 | 200 | $4.90 | $980.00 | 750 | $3,675.00 | 575 | $2,817.50 | $857.50 | $1,758.75 |
Model 32 gig | 223 | $29.09 | $6,487.07 | 700 | $9.33 | $6,531.00 | 200 | $9.33 | $1,866.00 | 900 | $8,397.00 | 677 | $6,316.41 | $2,080.59 | $4,406.48 |
Model 64 gig | 195 | $49.99 | $9,748.05 | 400 | $17.25 | $6,900.00 | 200 | $17.25 | $3,450.00 | 600 | $10,350.00 | 405 | $6,986.25 | $3,363.75 | $6,384.30 |
Total | $25,384.54 | $21,543.25 | $9,168.00 | $30,711.25 | $22,137.26 | $8,573.99 | $16,810.55 |
Hence, by picking value from the table
And,
September Report
Net Sales: |
$25,384.54 |
Minus cost of goods sold: |
|
Beginning inventory |
$21,543.25 |
Add purchases |
$9,168.00 |
Goods available for sale |
$30,711.25 |
Subtract ending inventory |
$22,137.26 |
Cost of goods sold |
$8,573.99 |
Net Income (Gross Profit) |
$16,810.55 |