Busn 2100
Date: 10/30/2017
Taha Ali : 201308970
Problem 1
OZ System
Income statement
Year ended December 31, 2015
Revenue $ $
Sales 120 000
Less: Sales Returns and Allowances 1 500
Sales Discounts 300 (1 800)
Net Sales 118 200
Cost of goods sold 75 000
Gross profit 43 200
Operating expenses
Depreciation expense 3500
Insurance expense 250
Salaries expense 120
Supplies expense 40 (3910)
Profit from Operations 39 290
Other Revenue & Expense
Interest Expense 40
Rent expense 160 (200)
Profit Before income tax 39 090
Net Income 39 090
Problem 2
FIFO
Date Description Purchase COGs Ending Inventory
March 1 Beginning Inventory 20 @ $6 = $ 120
March 6 Purchase 40 @ $8 = $320 20 @ $6 = $ 120
40 @ $8 = $ 320
= $ 440
March 8 Purchase 50 @ $7 = $350 20 @ $6 = $ 120
40 @ $8 = $ 320
50 @ $7 = $ 350
= $ 790
March 10 Sale 20 @ $6 = $ 120 15 @ $8 = $120
= $ 320 = $ 470
March 30 Purchase 25 @ $9 = $225 30@ $7 = $210
= $435
