11, 6, please read the qestion and answer b Novak Corporation sells one product, with information for July as follows:July 1411132027InventorySalePurchaseSalePurchaseSale100 units at $17.00 each80 units at $19.00 each150 units at $16.00 each120 units at $18.50 each160 units at $17.00 each100 units at $20.40 eachNovak uses the FIFO cost formula. All purchases and sales are on account. Ignore any estimated returns on purchases and sales. (b)DateJuly 4July 11July 13July 20July 27July 31Account Titles and ExplanationAccounts ReceivableSales RevenuePurchasesAccounts PayableAccounts ReceivableSales RevenuePurchasesAccounts PayableAccounts ReceivableSales RevenueInventoryCost of Goods SoldPurchasesCalculate gross profit using the periodic system.Gross profit/ (loss) $Debit1,5202,4002,2202,7202,0401704,950Credit1,5202,4002,2202,7202,0405,120

Using FIFO method, the inventory that was purchased first is to be sold first. The gross margin is…

Novak Corporation sells one product, with information for July as follows: July 1 4 11 13 20 27 Inventory Sale Purchase Sale Purchase Sale 100 units at $17.00 each 80 units at $19.00 each 150 units at $16.00 each 120 units at $18.50 each 160 units at $17.00 each 100 units at $20.40 each Novak uses the FIFO cost formula. All purchases and sales are on account. Ignore any estimated returns on purchases and sales.

Novak Corporation sells one product, with information for July as follows: July 1 4 11 13 20 27 Inventory Sale Purchase Sale Purchase Sale 100 units at $17.00 each 80 units at $19.00 each 150 units at $16.00 each 120 units at $18.50 each 160 units at $17.00 each 100 units at $20.40 each Novak uses the FIFO cost formula. All purchases and sales are on account. Ignore any estimated returns on purchases and sales.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 6EA: Akira Company had the following transactions for the month. Calculate the gross margin for the...

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