Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won't damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2016. All watches are sold for $303 each.
Jul.
17
Purchased 53 watches for $8,109 ($153 per watch) on the account.
Jul.
31
Sold 43 watches for $13,029 cash.
Aug.
12
Purchased 43 watches for $7,009 ($163 per watch) cash.
Aug.
22
Sold 33 watches for $9,999 on the account.
Sep.
19
Paid for watches ordered on July 17.
Sep
27
Received full payment for watches sold on account on August 22.
Oct.
27
Purchased 83 watches for $14,359 ($173 per watch) cash.
Nov.
20
Sold 93 watches for $28,179 cash.
Dec.
4
Purchased 106 watches for $19,398 ($183 per watch) cash.
Dec.
8
Sold 43 watches for $13,029 on the account.
Calculate sales revenue, cost of goods sold and ending inventory as of December 31, 2016, assuming Suzie uses FIFO to account for inventory.
Sales Revenue: _____?______
Cost of Goods Sold: ______?________
Ending Inventory: ________?_________
Prepare the gross profit section of a partial income statement for transactions related to MU watches.
GREAT ADVENTURES, INC.
Partial Income Statement
For the Year Ended December 31, 2016
Sales Revenue: _______?_________
Cost of Goods Sold: _________?___________
Gross Profit: ______?________
|
Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won't damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2016. All watches are sold for $303 each. |
| Jul. | 17 | Purchased 53 watches for $8,109 ($153 per watch) on the account. |
| Jul. | 31 | Sold 43 watches for $13,029 cash. |
| Aug. | 12 | Purchased 43 watches for $7,009 ($163 per watch) cash. |
| Aug. | 22 | Sold 33 watches for $9,999 on the account. |
| Sep. | 19 | Paid for watches ordered on July 17. |
| Sep | 27 | Received full payment for watches sold on account on August 22. |
| Oct. | 27 | Purchased 83 watches for $14,359 ($173 per watch) cash. |
| Nov. | 20 | Sold 93 watches for $28,179 cash. |
| Dec. | 4 | Purchased 106 watches for $19,398 ($183 per watch) cash. |
| Dec. | 8 | Sold 43 watches for $13,029 on the account. |
|
Calculate sales revenue, cost of goods sold and ending inventory as of December 31, 2016, assuming Suzie uses FIFO to account for inventory. |
Sales Revenue: _____?______
Cost of Goods Sold: ______?________
Ending Inventory: ________?_________
Prepare the gross profit section of a partial income statement for transactions related to MU watches.
GREAT ADVENTURES, INC.
Partial Income Statement
For the Year Ended December 31, 2016
Sales Revenue: _______?_________
Cost of Goods Sold: _________?___________
Gross Profit: ______?________
