At the beginning of November, Yoshi Inc.'s inventory consists of 69 units with a cost per unit of $94. The following transactions occur during the month of November. November 2 Purchase 85 units of inventory on account from Toad Inc. for $100 per unit, terms 3/10, n/30. November 3 Pay cash for freight charges related to the November 2 purchase, $340. November 9 Return 17 defective units from the November 2 purchase and receive credit. November 11 Pay Toad Inc. in full. November 16 Sell 100 units of inventory, to customers on account, $12,100. (Hint: The cost of units sold from the November 2 purchase includes $100 unit cost plus $5 per unit for freight leas $3 per unit for the purchase discount, or $102 per unit.) November 20 Receive full payment from customers related to the sale on November 16. November 21 Purchase 51 units of inventory from Toad Inc. for $104 per unit, terms 2/10, n/30. November 24 Sell 60 units of inventory to customers for cash, $7,200. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on November 20.) 3. Prepare the top section of the multiple-step income statement through gross profit for the month of November after the adjustment for lower of cost and net realizable value. YOSHI INC. Multiple-step Income Statement (partial) For the month of November Net Sales Cost of Good Sold
At the beginning of November, Yoshi Inc.'s inventory consists of 69 units with a cost per unit of $94. The following transactions occur during the month of November. November 2 Purchase 85 units of inventory on account from Toad Inc. for $100 per unit, terms 3/10, n/30. November 3 Pay cash for freight charges related to the November 2 purchase, $340. November 9 Return 17 defective units from the November 2 purchase and receive credit. November 11 Pay Toad Inc. in full. November 16 Sell 100 units of inventory, to customers on account, $12,100. (Hint: The cost of units sold from the November 2 purchase includes $100 unit cost plus $5 per unit for freight leas $3 per unit for the purchase discount, or $102 per unit.) November 20 Receive full payment from customers related to the sale on November 16. November 21 Purchase 51 units of inventory from Toad Inc. for $104 per unit, terms 2/10, n/30. November 24 Sell 60 units of inventory to customers for cash, $7,200. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on November 20.) 3. Prepare the top section of the multiple-step income statement through gross profit for the month of November after the adjustment for lower of cost and net realizable value. YOSHI INC. Multiple-step Income Statement (partial) For the month of November Net Sales Cost of Good Sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:At the beginning of November, Yoshi Inc.'s inventory consists of 69 units with a cost per unit of $94. The following
transactions occur during the month of November.
November 2 Purchase 85 units of inventory on account from Toad Inc. for $100 per unit, terms 3/10, n/30.
November 3 Pay cash for freight charges related to the November 2 purchase, $340.
November 9 Return 17 defective units from the November 2 purchase and receive credit.
November 11 Pay Toad Inc. in full.
November 16 Sell 100 units of inventory to customers on account, $12,100. (Hint: The cost of units sold from
the November 2 purchase includes $100 unit cost plus $5 per unit for freight loss $3 per unit for
the purchase discount, or $102 per unit.)
November 20 Receive full payment from customers related to the sale on November 16.
November 21 Purchase 51 units of inventory from Toad Inc. for $104 per unit, terms 2/10, n/30.
November 24 Sell 60 units of inventory to customers for cash, $7,200. (Note: For calculating the cost of
inventory sold, ignore the possible purchase discount on November 20.)
3. Prepare the top section of the multiple-step income statement through gross profit for the month of November after the adjustment
for lower of cost and net realizable value.
YOSHI INC.
Multiple-step Income Statement (partial)
For the month of November
Net Sales
Cost of Good Sold
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