Compute for the net sales that would be reported in LIVA company's Income Statement.

What should Cake report as cost of goods sold for 2022? * Cake Company sells one product which it purchases from various suppliers. The trial balance on December 31, 2022 included the following accounts: Sales (100,000 units at P150) Sales discount Purchase Purchase discount The inventory purchases during 2022 were as follows: Beginning inventory, January 1 Purchases, quarter ended March 31 Purchases, quarter ended June 30 Purchases, quarter ended Sept. 30 Purchases, quarter ended Dec. 31 Units 20,000 30,000 40,000 50,000 10,000 150,000 Unit cost 60 65 70 75 15,000,000 1,000,000 9,300,000 400,000 80 Total cost 1,200,000 1,950,000 2,800,000 3,750,000 800,000 10,500,000 Cake's accounting policy is to report inventory in its financial statements at the lower of cost or net realizable value. Cost is determined under the first-out method. Cake has determined that, on December 31, 2022, the replacement cost of its inventory was P70 per unit and the net realizable value was P72 per unit. The…

Assume Dollar Forest Store estimates its inventory by the gross margin method when preparing monthly financial statements (it uses the periodic method otherwise). For the past two years, the cost of goods purchased has averaged 62 percent of net sales. Assume further that the company's inventory records for its stores reveal the following data: $510,000 Inventory: June 1, 2023 Transactions during June: Purchases Sales Required Requirement 1. Estimate the June 30, 2023, inventory using the gross margin method. Cost of goods sold $4,880,000 $8,435,000 Estimated cost of ending inventory Requirement 2. Prepare the June Income statement through gross margin for Dollar Forest Store. Cost of goods sold Required 1. Estimate the June 30, 2023, inventory using the gross margin method. 2. Prepare the June income statement through gross margin for Dollar Forest Store. Print Done