Jan. 1 Dec.

31
Accounts payable 556,000 257,000 299,000
Direct materials 207,000 326,000
Work in process 258,000 288,000
Finished goods 405,000 ?
Sales 5,112,000
Sales Discount 106,000
Purchases 3,201,000
Freight in (on account) 132,000
Purchase returns and allowances 73,000
Purchase discounts 84,000
Gross profit rate 24%
Cost of Good Out on Consignment 21,500
Salvage Value 12,000
Direct Labor 912,000
Factory Overhead 678,900

Raw Materials 207,000

Add: Net Purchase
Purchase 3,201,000
Add: Frieght-in 132,000
Gross Purchase 3,333,000 3,632,000
Less: Purchase Return and Allowance 73,000 73,000
Purchase Discount 84,000 3,176,000 84,000
Raw Materials Available for Use 3,383,000 3,475,000
Less: Raw Materials End 326,000
Raw Materials Used 3,057,000
Add: Direct Labor 912,000
Applied Factory Overhead 678,900
Total munfacturing Cost 4,647,900
Add: Work in Process Beginning 258,000
Total Cost of Goods in Process 4,905,900
Less: Work in Process End 288,000
Cost of Goods Manufactured 4,617,900
Add: Finished Goods Beginning 405,000
Total Goods Available for Sale 5,022,900
Less: Finished Goods End
Cost of Goods Sold

Gross Profit Based on Cost

Sale 5,112,000 124%
Less: Cost of Good Sold 4,122,581 100%
Gross Profit Based on Cost 989,419 24% 19.35%
Gross Profit Based on Sale
Sale 5,112,000 100%
Less: Cost of Good Sold 3,885,120 76%
Gross Profit Based on Sale 1,226,880 24%

Raw Materials 207,000

Add: Net Purchase
Purchase 3,201,000
Add: Frieght-in 132,000
Gross Purchase 3,333,000
Less: Purchase Return and Allowance 73,000
Purchase Discount 84,000 3,176,000
Raw Materials Available for Use 3,383,000
Less: Raw Materials End 326,000
Raw Materials Used 3,057,000
Add: Direct Labor 912,000
Applied Factory Overhead 678,900
Total munfacturing Cost 4,647,900
Add: Work in Process Beginning 258,000
Total Cost of Goods in Process 4,905,900
Less: Work in Process End 288,000
Cost of Goods Manufactured 4,617,900
Add: Finished Goods Beginning 405,000
Total Goods Available for Sale 5,022,900
Less: Cost of Good Sold
(5112000*(100%-19.35%)) 4,122,581
900,319.35
Cost of Good Out on Consignment 21,500 21,500
Salvage Value 12,000 12,000
866,819.35

Raw Materials 207,000

Add: Net Purchase
Purchase 3,201,000
Add: Frieght-in 132,000
Gross Purchase 3,333,000
Less: Purchase Return and Allowance 73,000
Purchase Discount 84,000 3,176,000
Raw Materials Available for Use 3,383,000
Less: Raw Materials End 326,000
Raw Materials Used 3,057,000
Add: Direct Labor 912,000
Applied Factory Overhead 678,900
Total munfacturing Cost 4,647,900
Add: Work in Process Beginning 258,000
Total Cost of Goods in Process 4,905,900
Less: Work in Process End 288,000
Cost of Goods Manufactured 4,617,900
Add: Finished Goods Beginning 405,000
Total Goods Available for Sale 5,022,900
Less: Cost of Good Sold
(5112000*(76%) 3,885,120
1,137,780.00
Cost of Good Out on Consignment 21,500 21,500
Salvage Value 12,000 12,000
1,104,280.00
 Cost Retail
Inventory, January 1 179,600 200,000.00
Purchases 475,400 800,000.00
Less: Purchase Returns 50,000 80,000.00
Less: Purchase Discount 23,000
Less: Purchase Allowance 10,000
Add: Frieght-in 5,000
Add: Markups 200,000.00
Less: Markup Cancellation 40,000.00
Add: Departamental Transfer- In 70,000 100,000.00
Less: Departamental Transfer-Out 60,000 90,000.00
Less: Abnormal Loss 20,000 40,000.00 Cost Ratio
GAFS- Conservative 567000 1,050,000.00 0.54
Less: Net Markdowns 115,000.00
Add: Markdown Cancellation 10,000.00
GAFS- Average 567000 945,000.00 0.6
Less: Net Sale+Normal Shrinkage 820,000.00
Ending Inventory at Retail 125,000.00

Sales 800,000
Sale ruturns 80,000
Sales allowance and discount (ignored)
Normal Shrinkage 100,000
Normal Loss ShopLifting
Net Sales 820,000

GAFS- Average 945,000.00

Less: Net Sale 820,000.00
Ending Inventory at Retail 125,000.00

567000 -179600 0.52

FIFO 945000 -200000
Average 0.6
Conservative 0.54

fifo
Ending Inventory at Retail 125,000.00
fifo 0.52
Ending Inventory at Cost 65,000.00
GAFS at Cost 567,000.00
Ending Inventory at Cost 65,000.00
502,000.00
Average
Ending Inventory at Retail 125,000.00
Conservative 0.60
Ending Inventory at Cost 75,000.00
Average 567,000.00
Ending Inventory at Cost 75,000.00
492,000.00

Conservative
Ending Inventory at Retail 125,000.00
Conservative 0.54
Ending Inventory at Cost 67,500.00
GAFS at Cost 567,000.00
Ending Inventory at Cost 67,500.00
499,500.00

Cost Retail
Inventory, January 1 70,000 100,000.00
Purchases 292,500 400,000.00
Less: Purchase Returns
Less: Purchase Discount
Less: Purchase Allowance
Add: Frieght-in
Add: Markups 75,000.00
Less: Markup Cancellation
Add: Departamental Transfer- In
Less: Departamental Transfer-Out
Less: Abnormal Loss Cost Ratio
GAFS- Conservative 362500 575,000.00 0.630435
Less: Net Markdowns 25,000.00
Add: Markdown Cancellation
GAFS- Average 362500 550,000.00 0.659091
Less: Net Sale+Normal Shrinkage 375,000.00
Ending Inventory at Retail 175,000.00

Sales
Sale ruturns
Sales allowance and discount (ignored)
Normal Shrinkage
Normal Loss ShopLifting
Net Sales 0

GAFS- Average 550,000.00

Less: Net Sale 375,000.00
Ending Inventory at Retail 175,000.00
 362500 -70000 0.65
FIFO 550000 -100000
Average 0.65909090909
Conservative 0.63043478261

fifo
Ending Inventory at Retail 175,000.00
fifo 0.65
Ending Inventory at Cost 113,750.00
GAFS at Cost 362,500.00
Ending Inventory at Cost 113,750.00
248,750.00

Average
Ending Inventory at Retail 175,000.00
Conservative 0.66
Ending Inventory at Cost 115,340.91
Average 362,500.00
Ending Inventory at Cost 115,340.91
247,159.09

Conservative
Ending Inventory at Retail 175,000.00
Conservative 0.63
Ending Inventory at Cost 110,326.09
GAFS at Cost 362,500.00
Ending Inventory at Cost 110,326.09
252,173.91