Exercise 9-5 (Part Level Submission) Jan. 31 Feb. 28 Mar. 31 Apr. 30 (a) Februar
ID: 2403928 • Letter: E
Question
Exercise 9-5 (Part Level Submission)
Jan. 31
Feb. 28
Mar. 31
Apr. 30
(a)
February
March
April
Exercise 9-5 (Part Level Submission)
Presented below is information related to Pina Enterprises.Jan. 31
Feb. 28
Mar. 31
Apr. 30
Inventory at cost $15,450 $15,553 $17,510 $14,420 Inventory at LCNRV 14,935 12,978 16,068 13,699 Purchases for the month 17,510 24,720 27,295 Sales for the month 29,870 36,050 41,200(a)
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).)February
March
April
Cost of Goods AvailableCost of Goods SoldFreight-inGain (loss) due to Market Fluctuations of InventoryGross ProfitInventory, BeginningInventory, EndingPurchasesPurchase DiscountsPurchase ReturnsRevenuesSales RevenueSales Returns
$ $ $Cost of Goods AvailableCost of Goods SoldFreight-inGain (loss) due to Market Fluctuations of InventoryGross ProfitInventory, BeginningInventory, EndingPurchasesPurchase DiscountsPurchase ReturnsRevenuesSales RevenueSales Returns
Cost of Goods Available Cost of Goods Sold Freight-in Gain (loss) due to Market Fluctuations of Inventory Gross Profit Inventory, Beginning Inventory, Ending Purchases Purchase Discounts Purchase Returns Revenues Sales Revenue Sales Returns
Cost of Goods Available Cost of Goods Sold Freight-in Gain (loss) due to Market Fluctuations of Inventory Gross Profit Inventory, Beginning Inventory, Ending Purchases Purchase Discounts Purchase Returns Revenues Sales Revenue Sales Returns
Cost of Goods Available Cost of Goods Sold Freight-in Gain (loss) due to Market Fluctuations of Inventory Gross Profit Inventory, Beginning Inventory, Ending Purchases Purchase Discounts Purchase Returns Revenues Sales Revenue Sales Returns
Cost of Goods Available Cost of Goods Sold Freight-in Gain (loss) due to Market Fluctuations of Inventory Gross Profit Inventory, Beginning Inventory, Ending Purchases Purchase Discounts Purchase Returns Revenues Sales Revenue Sales Returns
Cost of Goods Available Cost of Goods Sold Freight-in Gain (loss) due to Market Fluctuations of Inventory Gross Profit Inventory, Beginning Inventory, Ending Purchases Purchase Discounts Purchase Returns Revenues Sales Revenue Sales Returns
Cost of Goods AvailableCost of Goods SoldFreight-inGain (loss) due to Market Fluctuations of InventoryGross ProfitInventory, BeginningInventory, EndingPurchasesPurchase DiscountsPurchase ReturnsRevenuesSales RevenueSales Returns
Cost of Goods AvailableCost of Goods SoldFreight-inGain (loss) due to Market Fluctuations of InventoryGross ProfitInventory, BeginningInventory, EndingPurchasesPurchase DiscountsPurchase ReturnsRevenuesSales RevenueSales Returns
$ $ $Explanation / Answer
Monthly income statement:
Working Note
Calculation of cost of goods sold (COGS):
COGS = Opening inventory + Purchases - Closing inventory
**LCNRV - Lower of Cost or Net Realisable Value
Jan 31 Feb 28 Mar 31 Apr 30 a. Sales for the month Nil $29,870 $36,050 $41,200 b. Cost of Goods Sold (See Working Note below) Nil $19,467 $21,630 $29,664 Net income = a-b Nil $10,403 $14,420 $11,536Related Questions
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