Question

Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won’t damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2022. All watches are sold for $498 each.

Jul.		17		Purchased 48 watches for $7,104 ($148 per watch) on account.
Jul.		31		Sold 38 watches for $18,924 cash.
Aug.		12		Purchased 38 watches for $6,004 ($158 per watch) cash.
Aug.		22		Sold 28 watches for $13,944 on account.
Sep.		19		Paid for watches purchased on July 17.
Sep.		27		Receive cash of $16,200 for watches sold on account on August 22.
Oct.		27		Purchased 78 watches for $13,104 ($168 per watch) cash.
Nov.		20		Sold 88 watches for $43,824 cash.
Dec.		4		Purchased 116 watches for $20,648 ($178 per watch) on account.
Dec.		8		Sold 38 watches for $18,924 on account.

please help and show work, thank you!

Required information (The following information applies to the questions displayed below.) Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from Kayaking, rain, fishing, or even diving up to 100 feet won't damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2022. All watches are sold for $498 each. Jul. 17 Purchased 48 watches for $7,104 ($148 per watch) on account. Jul. 31 Sold 38 watches for $18,924 cash. Aug. 12 Purchased 38 watches for $6,004 ($158 per watch) cash. Aug. 22 Sold 28 watches for $13,944 on account. Sep. 19 Paid for watches purchased on July 17. Sep. 27 Receive cash of $16, 200 for watches sold on account on August 22. Oct. 27 Purchased 78 watches for $13, 104 ($168 per watch) cash. Nov. 20 Sold 88 watches for $43,824 cash. Dec. 4 Purchased 116 watches for $20,648 ($178 per watch) on account. Dec. 8 Sold 38 watches for $18,924 on account. Required: 1-a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2022, assuming Suzie uses FIFO to account for inventory. X Answer is complete but not entirely correct. Sales Revenue Cost of Goods Sold Ending Inventory $ $ $ 100,596 X 46,860 X 20,648X

Answer 1

Sales Revenue $ Cost of Goods Sold $ Ending Inventory $ 95,616 (192 watches * $498 each) 31,196 15,664

Great Adventures Inc Partial Income Statement For the Year Ended December 31, 2022 Sales Revenue Cost of Goods Sold $ $ 95,616 31,196 Gross Profit $ 64,420

Working Calculation:

VO FIFO METHOD Cost of Goods Sold Units Price Total No. US$ US$ Goods Purchased Price Total US$ US$ 48 $ 148 $ January Units NO. Jul-17 Units No. Inventory Balance Price Total US$ US$ 48 $ 148 $ 7,104 7,104 Jul-31 38 $ 148 $ 5,624 10 $ 148 $ 1,480 Aug-121 38 $ 158 $ 6,004 10 $ 38 $ 148 158 $ $ 1,480 6,004 Aug-22 10 $ 18 $ 148 158 $ $ 1,480 2,844 20 $ 158 $ 3,160 Oct-27 78 $ 168 $ 13,104 20 $ 78 $ 158 168 $ $ 3,160 13,104 Nov-20 20 $ 68 $ 158 168 $ $ 3,160 11,424 10 $ 168 $ 1,680 Dec-04 116 $ 178 $ 20,648 10 $ 116 $ 168 178 $ $ 1,680 20,648 Dec-08 10 $ 28 $ 168 178 $ $ 1,680 4,984 88 $ 178 $ 15,664 192 $ 31,196