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 Sales 10624 11437 21332 27644 31269 Totals Cost of Goods Sold Beginning Inventory ✓ Purchases Terms Net 30 Gross Profit/(Loss) Net 30 Gross profit rate 1/5, net 30 1/10, net 30 1/10, net 30 1/10, net 30 Less Ending Inventory Units Received 98 60 65 90 82 74 469 = Unit Invoice Cost $20 20 16 15 12 11 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.) 1960 i Gross Invoice Amount $1,960 7,306.12 (1114.74) i FIFO 1,200 1.040 1,350 $ 984 $7,348 $ 814 8,210.25 T 8.151.38 58.87 0.72 %
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 Sales 10624 11437 21332 27644 31269 Totals Cost of Goods Sold Beginning Inventory ✓ Purchases Terms Net 30 Gross Profit/(Loss) Net 30 Gross profit rate 1/5, net 30 1/10, net 30 1/10, net 30 1/10, net 30 Less Ending Inventory Units Received 98 60 65 90 82 74 469 = Unit Invoice Cost $20 20 16 15 12 11 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.) 1960 i Gross Invoice Amount $1,960 7,306.12 (1114.74) i FIFO 1,200 1.040 1,350 $ 984 $7,348 $ 814 8,210.25 T 8.151.38 58.87 0.72 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
G.198.
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
Νον. 24
Invoice
Number
balance
Sales
10624
11437
21332
27644
31269
Totals
Cost of Goods Sold
Beginning Inventory ✓
Purchases
Less:
Terms
Net 30
Net 30
Gross Profit/(Loss) ✓
1/5, net 30
1/10, net 30
Gross profit rate
1/10, net 30
1/10, net 30
Ending Inventory
Units
Received
98
$
60
65
90
82
74
469
Unit Invoice
Cost
$20
20
16
15
12
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.
11
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.)
1960
Gross Invoice
Amount
$1,960
7,306.12
(1114.74)
1,200
FIFO
1.040
1,350
$
984
814
$7,348
8,210.25
800
8.151.38
58.87
0.72 %
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