Morrie Produce began operations on July 1. Below is its income statement for the month of July and the current portion of its balance sheet dated July 31.

\begin{array}{lr}\text { Sales revenue } & \$ 45,000 \\\text { Cost of goods sold (Note 1) } & \underline{ 12,000} \\\text { Gross profit } &33,000 \\\text { Operating expenses } & \underline{ 4,700}\\\text { Net income }& \underline{\$28,300}\\\\ \underline{\text { Current assets: }}\\\text { Cash } & \$ 8,000 \\\text { Accounts receivable } & 4,000 \\\text { Inventory } & \underline{1,200} \\\text { Total current assets } &\underline{ \$ 13,200}\\\underline{\text { Current liabilities: }}\\ \text { Accounts payable } & \$ 9,000 \\\text { Notes payable } &\underline{ 4.000 }\\\text { Total current liabilities }&\underline{ \$13,000}\end{array}

\text { Note 1: Marrie uses the periztic LIFO methut of inventury veluatizn. }

\begin{array}{ll}\text { July } 1 & \text { Purchased80 units@ } \$ 30 &\$2,400\\\text { July } 17 & \text { Purchased } 180 \text { units@ } \$ 60 &\underline{10,800}\\\text { Cost of goods available } &&13,200 \\\text { July } 31 \text { Inventory } & (40 @ \$ 30) &\underline{1,200}\\\text { Cost of goods sold } &&\underline{\$12,000}\end{array}

Complete the following income statement and current portion of the balance sheet for Morrie for July using the FIFO cost flow assumption instead of LIFO.
Sales revenue . . . . . . . . . . . . . . . . . _____________________
Cost of goods sold . . . . . . . . . . . . . ._____________________
Gross profit . . . . . . . . . . . . . . . . . . . _____________________
Operating expenses. . . . . . . . . . . . . _____________________
Net income. . . . . . . . . . . . . . . . . . . . _____________________
Current assets:
Inventory. . . . . . . . . . . . . . . . . . ._____________________

Victoria Fashions Clothing Store Uses the Perpetual Method of Accounting

Multiple Choice

Correct Answer:VerifiedUnlock this answer nowGet Access to more Verified Answers free of chargeAccess For Free

Correct Answer:
Verified
Unlock this answer now
Get Access to more Verified Answers free of charge