Question

Determining Amounts for Items Omitted from Income Statement An item has been omitted in each of the following four lists of income statement data. Determine the missing amount. Chase Company Dessup Inc. Osterman Company Snyder Co. Sales $481,500 $1,204,000 Cost of goods sold $ $413,300 $421,400 Gross profit $79,200 $285,900 $312,900 $277,400 Feedback Check My Wor As you go through this exercise, keep in mind the relationships of the income statement: Sales - cost of goods sold gross profit. Learning Objective 3.

Answer 1

Answer-Chase company-

Gross Profit =Sales-Cost of goods sold

$79,200 =$481,500-Cost of goods sold

Cost of goods sold= $481,500-$79,200

=$402,300

Jessup Inc.-

Sales=Cost of goods sold+Gross profit

=$413,300+285,900

=$699,200

Osterman Company-

Gross profit=Sales-Cost of goods sold

$312,900=$1,204,000-Cost of goods sold

Cost of goods sold=$1,204,000-$312,900

=$891,100

Synder Co.-

Sales=Cost of goods sold+Gross Profit

=$421,400+$277,400

=$698,800