Part 1 1. Benjo's Battery Store sells two brands of battery: Silver and Gold. Purchases for the month of June consisted of 30 silver brand units at 1,500 each and 20 gold brand units at 1,800 each. At the end of the month an inventory count showed that 12 silver brand units and 5 gold brand units were still on hand. Required: a. Compute for each brand: purchases, merchandise inventory at the end of June and cost of sales. b. Assume a silver brand sells for 2,400 and a gold brand sells for 2,750. Compute for each brand: sales revenue and gross income on sales. 2. Still using No. 1. Assume that is the following month another 25 silver brand units and 20 gold brand units were purchased from the suppliers at the same prices. At the end of the month only 18 silver brand units and 10 gold units were on hand. a. Compute for each brand: cost of purchases, total goods available for sale, merchandise inventory end of July and the cost of sales. (use the latest cost prices) b. Assuming the same sales prices, compute for each brand: sales revenue and gross income on sales.
Part 1 1. Benjo's Battery Store sells two brands of battery: Silver and Gold. Purchases for the month of June consisted of 30 silver brand units at 1,500 each and 20 gold brand units at 1,800 each. At the end of the month an inventory count showed that 12 silver brand units and 5 gold brand units were still on hand. Required: a. Compute for each brand: purchases, merchandise inventory at the end of June and cost of sales. b. Assume a silver brand sells for 2,400 and a gold brand sells for 2,750. Compute for each brand: sales revenue and gross income on sales. 2. Still using No. 1. Assume that is the following month another 25 silver brand units and 20 gold brand units were purchased from the suppliers at the same prices. At the end of the month only 18 silver brand units and 10 gold units were on hand. a. Compute for each brand: cost of purchases, total goods available for sale, merchandise inventory end of July and the cost of sales. (use the latest cost prices) b. Assuming the same sales prices, compute for each brand: sales revenue and gross income on sales.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Topic Video
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Transcribed Image Text:Part 1
1. Benjo's Battery Store sells two brands of battery: Silver and Gold. Purchases for the
month of June consisted of 30 silver brand units at 1,500 each and 20 gold brand units
at 1,800 each. At the end of the month an inventory count showed that 12 silver brand
units and 5 gold brand units were still on hand.
Required:
a. Compute for each brand: purchases, merchandise inventory at the end of June and
cost of sales.
b. Assume a silver brand sells for 2,400 and a gold brand sells for 2,750. Compute for
each brand: sales revenue and gross income on sales.
2. Still using No. 1. Assume that is the following month another 25 silver brand units and
20 gold brand units were purchased from the suppliers at the same prices. At the end of
the month only 18 silver brand units and 10 gold units were on hand.
Compute for each brand: cost of purchases, total goods available for sale,
merchandise inventory end of July and the cost of sales. (use the latest cost prices)
b. Assuming the same sales prices, compute for each brand: sales revenue and gross
а.
income on sales.
Part 2
The following data was taken from ledger account balances and supplementary data for ABM
Company.
Merchandise inventory beginning
Merchandise inventory, ending
Purchases
Purchase discounts
Php. 20,000.00
23,000.00
215,000.00
6,000.00
Purchase Return and Allowances
3,000.00
400,000.00
1,800.00
Sales
Freight-in
Required: Prepare statement of cost of goods sold and gross profit for the year ended
December 31, 2020. In proper format, show the computation.
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