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Novak Inc. is a retailer using a perpetual inventory system. All sales returns from customers result in the goods being returned to inventory. (Assume that the inventory is not damaged.) Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Novak Inc. for the month of January. Date Description Dec. 31 Jan. 2 Jan. 6 Jan. 9 Jan. 9 Jan. 10 Jan. 10 Jan. 23 Jan. 30 Quantity Beginning inventory Purchase Sale Sale return Purchase Purchase return Sale Purchase Sale Unit Cost or Selling Price 160 100 180 10 75 15 50 100 120 $20 22 38 38 24 24 46 27 50 (a) Using FIFO method, calculate (i) cost of goods sold, (ii) ending inventory, and (iii) gross profit. (Assume sales returns had a cost of $20 and purchase returns had a cost of $24)

Novak Inc. is a retailer using a perpetual inventory system. All sales returns from customers result in the goods being returned to inventory. (Assume that the inventory is not damaged.) Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Novak Inc. for the month of January. Date Description Dec. 31 Jan. 2 Jan. 6 Jan. 9 Jan. 9 Jan. 10 Jan. 10 Jan. 23 Jan. 30 Quantity Beginning inventory Purchase Sale Sale return Purchase Purchase return Sale Purchase Sale Unit Cost or Selling Price 160 100 180 10 75 15 50 100 120 $20 22 38 38 24 24 46 27 50 (a) Using FIFO method, calculate (i) cost of goods sold, (ii) ending inventory, and (iii) gross profit. (Assume sales returns had a cost of $20 and purchase returns had a cost of $24)

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 Inc. is a retailer using a perpetual inventory system. All sales returns from customers result in the goods being returned to inventory. (Assume that the inventory is not damaged.) Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Novak Inc. for the month of January. Date Description Dec. 31 Jan. 2 Jan. 6 Jan. 9 Jan. 9 Jan. 10 Jan. 10 Jan. 23 Jan. 30 Quantity Beginning inventory Purchase Sale Sale return Purchase Purchase return Sale Purchase Sale Unit Cost or Selling Price 160 100 180 10 75 15 50 100 120 $20 22 38 38 24 24 46 27 50 (a) Using FIFO method, calculate (i) cost of goods sold, (ii) ending inventory, and (iii) gross profit. (Assume sales returns had a cost of $20 and purchase returns had a cost of $24.) Cost of goods sold $ Ending Inventory $ Gross Profit $
Transcribed Image Text:Novak Inc. is a retailer using a perpetual inventory system. All sales returns from customers result in the goods being returned to inventory. (Assume that the inventory is not damaged.) Assume that there are no credit transactions; all amounts are settled in cash. You are provided with the following information for Novak Inc. for the month of January. Date Description Dec. 31 Jan. 2 Jan. 6 Jan. 9 Jan. 9 Jan. 10 Jan. 10 Jan. 23 Jan. 30 Quantity Beginning inventory Purchase Sale Sale return Purchase Purchase return Sale Purchase Sale Unit Cost or Selling Price 160 100 180 10 75 15 50 100 120 $20 22 38 38 24 24 46 27 50 (a) Using FIFO method, calculate (i) cost of goods sold, (ii) ending inventory, and (iii) gross profit. (Assume sales returns had a cost of $20 and purchase returns had a cost of $24.) Cost of goods sold $ Ending Inventory $ Gross Profit $
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