Question

Use the following to answer questions 30 - 35 Find the missing amounts: Case 3 Case 1 $992,000 Net Sales COGS Gross profit Operating expense Operating income Case 2 $758,300 444,300 ? 176,500 365,000 298,000 369,200 295,200 88,700 30.$__ For case 1, determine cost of goods sold For case 1, determine operating income (include "if needed) For case 2, determine gross profit For case 2, determine operating income (include "_" if needed) 34. $ For case 3, determine net sales 35. $_ _For case 3, determine operating expense 36. Inventory records for DAD Incorporated revealed the following: Unit Number of Units Date Apr. 1 Transaction Beginning inventory Purchase Cost $123.00 $130.00 450 Apr. 4 DAD sold 490 units of inventory during the month. Ending inventory assuming LIFO would be $

Answer 1

Answer to first question in the list: 30) 31) 32) 33) 34) 35) For case-1, cost of goods sold For case-1, operating income For case-2, gross profit For case-2, operating income For case-3, net sales For case-3, operating expense $622,800 $74,000 $314,000 $137,500 $663,000 $209,300 Workings: Net sales COGS Gross profit Operating expense Operating income Case-1 Case-2 Case-3 $992,000 $758,300 $663,000 $622,800 $444,300 $365,000 $369,200 $314,000 $298,000 $295,200 $176,500 $209,300 $74,000 $137,500 $88,700 Explanation: For case-1: cost of goods sold = net sales - gross profit = $992,000 - $369,200 = $622,800; for case-1, operating income = gross profit - operating expense = $369,200 - $295,200 = $74,000; for case-2, gross profit = net sales - cost of goods sold = $758,300 - $444,300 = $314,000; for case-2, operating income = gross profit - operating expense = $314,000 - $176,500 = $137,500; For case-3, net sales = gross profit + cost of goods sold = $298,000 + $365,000 = $663,000; For case-3, operating expense = gross profit - operating income = $298,000 - $88,700.