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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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11, 6, please read the qestion and answer b
Transcribed Image Text: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.
Transcribed Image Text:(b)
Date
July 4
July 11
July 13
July 20
July 27
July 31
Account Titles and Explanation
Accounts Receivable
Sales Revenue
Purchases
Accounts Payable
Accounts Receivable
Sales Revenue
Purchases
Accounts Payable
Accounts Receivable
Sales Revenue
Inventory
Cost of Goods Sold
Purchases
Calculate gross profit using the periodic system.
Gross profit/ (loss) $
Debit
1,520
2,400
2,220
2,720
2,040
170
4,950
Credit
1,520
2,400
2,220
2,720
2,040
5,120
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