Exercise 6-11 a-bSheridan Jewelry reported the following income statement data for a 2-year period.Sales revenueCost of goods soldBeginning inventoryCost of goods purchasedCost of goods available for saleEnding inventoryCost of goods soldGross profitSalesCost of goods soldBeginning inventoryCost of goods purchasedCost of goods available for saleEnding inventoryCost of goods soldGross profit20192020HK$2,120,000 HKS2,500,000328,0001,840,0002,168,000444,5001,723,500HK$396,500Sheridan uses a periodic inventory system. The inventories at January 1,2019, and December 31, 2020, are correct. However, the ending inventoryat December 31, 2019, was understated HK$69,000.Part 1Prepare correct income statement data for the 2 years.20192020HK$HK$Days in inventory444,5002,155,0002,599,500530,0002,069,500HK$430,500Part 2(b) What is the cumulative effect of the inventory error on total grossprofit for the 2 years?The cumulative effect on total gross profit for the two years is HK$Type your answer here2018Exercise 6-12 a1-a3This information is available for Nash Photo for 2018, 2019, and 2020.201820192020£116,000 £327,000£404,000327,000 404,000 484,500897,500 1,109,000 1,340,0001,207,500 1,633,000 1,898,500HK$Beginning inventoryEnding inventoryCost of goods soldSales revenuePart 1Calculate inventory turnover for Nash Photo Ltd. for 2018, 2019, and2020. (Round answers to 2 decimal places, e.g. 0.10. Use 365 days forcalcuation.)daysHKS2019Inventory turnoverratioPart 2Calculate days in inventory for Nash Photo Ltd. for 2018, 2019, and 2020.(Round answers to 1 decimal place, e.g. 1.5.)201820192020days2020days 0Exercise 6-16Swifty's Boards sells a snowboard, Xpert, that is popular with snowboardenthusiasts. Information relating to Swifty's purchases of Xpertsnowboards during September is shown below. During the same month,121 Xpert snowboards were sold. Swifty's uses a perpetual inventorysystem.Date Explanation Units Unit Cost Total CostSept. 1Inventory 23 HK$814 HK$18,722Sept. 12Purchases45Sept. 19 Purchases.20Sept. 26 Purchases44Totals132DateSept. 5 SaleSept. 16 SaleSept. 29 SaleUnits Unit Price Total Cost12 HK$1,672 HK$20,0645059Totals 1218568748821,7061,756Ending Inventory FIFO38,52017,48038,808HK$113,530Part 1Compute ending inventory at September 30 using FIFO and moving-average cost. (Round per unit cost to 2 decimal places, e.g. 15.25 andfinal answers to 0 decimal places, e.g. 125.)FIFOMOVING-AVERAGE COSTHK$Choose your answer herePart 485,300103,604HK$208,968The ending inventory HKSPart 2Compare ending inventory using a perpetual inventory system to endinginventory using a periodic inventory system. (Round per unit cost to 2decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g.125.)PeriodicHK$HK$PerpetualHK$HK$Ending Inventory AveragePart 3Which inventory cost flow method (FIFO, moving-average cost) gives thesame ending inventory value under both periodic and perpetual?yields the same ending inventory value.Which method gives different ending inventory values?Choose your answer hereyields different ending inventory values.

Name: Exercise 6-11 a-bSheridan Jewelry reported the following income state
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Description: Exercise 6-11 a-bSheridan Jewelry reported the following income statement data for a 2-year period.Sales revenueCost of goods soldBeginning inventoryCost of goods purchasedCost of goods available for saleEnding inventoryCost of goods soldGross profi

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Exercise 6-11 a-b Sheridan Jewelry reported the following income statement data for a 2- year period. Sales revenue Cost of goods sold Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Gross profit 2019 2020 HKS2,120,000 HKS2,500,000 328,000 1,840,000 2,168,000 444,500 1,723,500 HK$396,500 444,500 2,155,000 2,599,500 530,000 2,069,500 HK$430,500 Sheridan uses a periodic inventory system. The inventories at January 1, 2019, and December 31, 2020, are correct. However, the ending inventory at December 31, 2019, was understated HK$69,000.

Exercise 6-11 a-b Sheridan Jewelry reported the following income statement data for a 2- year period. Sales revenue Cost of goods sold Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Gross profit 2019 2020 HKS2,120,000 HKS2,500,000 328,000 1,840,000 2,168,000 444,500 1,723,500 HK$396,500 444,500 2,155,000 2,599,500 530,000 2,069,500 HK$430,500 Sheridan uses a periodic inventory system. The inventories at January 1, 2019, and December 31, 2020, are correct. However, the ending inventory at December 31, 2019, was understated HK$69,000.

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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