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from the records at the December 31, 2023 year end: Date Jan. 1 15 Mar. 15 June 20 Sept. 12 Nov. 24 Invoice Number balance 10624 11437 21332 27644 31269 Totals Terms Net 30 Net 30 1/5, net 30 1/10, net 30 1/10, net 30 1/10, net 30 Units Received 98 60 65 90 82 74 469 Unit Invoice Cost $20 20 16 15 12 11 Gross Invoice Amount $1.960 1,200 1.040 1,350 984 814 $7.348 A physical inventory on December 31, 2023, reveals that 100 basketballs are in stock. The bookkeeper informs you that all the discounts were taken. Assume that Novak uses a periodic inventory system and records purchases at their invoice price less discounts. During 2023, the average sales price per basketball was $22.25.

from the records at the December 31, 2023 year end: Date Jan. 1 15 Mar. 15 June 20 Sept. 12 Nov. 24 Invoice Number balance 10624 11437 21332 27644 31269 Totals Terms Net 30 Net 30 1/5, net 30 1/10, net 30 1/10, net 30 1/10, net 30 Units Received 98 60 65 90 82 74 469 Unit Invoice Cost $20 20 16 15 12 11 Gross Invoice Amount $1.960 1,200 1.040 1,350 984 814 $7.348 A physical inventory on December 31, 2023, reveals that 100 basketballs are in stock. The bookkeeper informs you that all the discounts were taken. Assume that Novak uses a periodic inventory system and records purchases at their invoice price less discounts. During 2023, the average sales price per basketball was $22.25.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Novak Limited stocks a variety of sports equipment for sale to institutions. The following stock record card for basketballs was taken from the records at the December 31, 2023 year end: Date Jan. 1 15 Mar. 15 June 20 Sept. 12 Nov. 24 Invoice Number balance 10624 11437 21332 27644 31269 Totals Terms Net 30 Net 30 1/5, net 30 1/10, net 30 1/10, net 30 1/10, net 30 Units Received 98 60 65 90 82 74 469 407 Unit Invoice Cost $20 20 16 15 12 11 Gross Invoice Amount $1,960 1,200 1.040 1,350 984 814 $7,348 A physical inventory on December 31, 2023, reveals that 100 basketballs are in stock. The bookkeeper informs you that all the discounts were taken. Assume that Novak uses a periodic inventory system and records purchases at their invoice price less discounts. During 2023, the average sales price per basketball was $22.25.
Transcribed Image Text:Novak Limited stocks a variety of sports equipment for sale to institutions. The following stock record card for basketballs was taken from the records at the December 31, 2023 year end: Date Jan. 1 15 Mar. 15 June 20 Sept. 12 Nov. 24 Invoice Number balance 10624 11437 21332 27644 31269 Totals Terms Net 30 Net 30 1/5, net 30 1/10, net 30 1/10, net 30 1/10, net 30 Units Received 98 60 65 90 82 74 469 407 Unit Invoice Cost $20 20 16 15 12 11 Gross Invoice Amount $1,960 1,200 1.040 1,350 984 814 $7,348 A physical inventory on December 31, 2023, reveals that 100 basketballs are in stock. The bookkeeper informs you that all the discounts were taken. Assume that Novak uses a periodic inventory system and records purchases at their invoice price less discounts. During 2023, the average sales price per basketball was $22.25.
Prepare income statements for the year ended December 31, 2023, as far as the "gross profit" line under each of the FIFO and weighted average methods, and calculate the gross profit rate for each. (Round Gross profit rate to 1 decimal place, e.g. 5.2% and all other answers to 2 decimal places, e.g. 52.75.) Sales Cost of Goods Sold Beginning Inventory Purchases Less ✓ Ending Inventory Gross Profit/(Loss) Gross profit rate 1960 i 7,306,12 (1114.74) FIFO $ 8,210.25 8,151.38 58.87 0.72 %
Transcribed Image Text:Prepare income statements for the year ended December 31, 2023, as far as the "gross profit" line under each of the FIFO and weighted average methods, and calculate the gross profit rate for each. (Round Gross profit rate to 1 decimal place, e.g. 5.2% and all other answers to 2 decimal places, e.g. 52.75.) Sales Cost of Goods Sold Beginning Inventory Purchases Less ✓ Ending Inventory Gross Profit/(Loss) Gross profit rate 1960 i 7,306,12 (1114.74) FIFO $ 8,210.25 8,151.38 58.87 0.72 %
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