Prepare a multiple step income statement

1. From The Adjusted Trial Balance For Worker Products Company Given Below, Prepare A Multiple-Step Income Statement In Good Form.

1. From the adjusted trial balance for Worker Products Company given below, prepare a multiple-step income statement in good form.

Worker Products Company

Adjusted Trial Balance

December 31

DebitCredit

Cash $9,400

Accounts receivable25,000

Merchandise inventory 36,000

Office supplies 900

Store equipment 75,000

Accumulated depreciation - store equipment $22,000

Office equipment 60,000

Accumulated depreciation -office equipment 15,000

Accounts payable 42,000

Notes payable 10,000

F. Worker, Capital 110,700

F. Worker, Withdrawals 48,000

Sales 325,000

Sales discounts 6,000

Sales returns and allowances 16,500

Cost of goods sold 195,000

Sales salaries expense 32,500

Depreciation expense - store equipment 11,000

Depreciation expense - office equipment 7,500

Office supplies expense 1,300

Interest expense 600

Totals $524,700 $524,700

2. From the adjusted trial balance for Worker Products Company given below, prepare the necessary closing entries.

Worker Products Company

Adjusted Trial Balance

December 31

Debit Credit

Cash$ 9,400

Accounts receivable 25,000

Merchandise inventory 36,000

Office supplies 900

Store equipment 75,000

Accumulated depreciation - store equipment $22,000

Office equipment 60,000

Accumulated depreciation -office equipment 15,000

Accounts payable 42,000

Notes payable 10,000

F. Worker, Capital 110,700

F. Worker, Withdrawals 48,000

Sales 325,000

Sales discounts 6,000

Sales returns and allowances 16,500

Cost of goods sold 195,000

Sales salaries expense 32,500

Depreciation expense - store equipment 11,000

Depreciation expense - office equipment 7,500

Office supplies expense 1,300

Interest expense 600

Totals $524,700 $524,700

3. A company made the following merchandise purchases and sales during the month of May:

May 1 Purchased 380 units at$15 each

May 5 Purchased 270 units at$17 each

May 10 Sold400 units at $50 each

May 20 Purchased 300 units at $22 each

May 25 Sold 400 units at $50 each

There was no beginning inventory. If the company uses the LIFO periodic inventory method, what would be the cost of the ending inventory?

4. A company made the following merchandise purchases and sales during the month of May:

May 1 Purchased 380 units at $15 each

May 5 Purchased 270 units at $17 each

May 10 Sold 400 units at $50 each

May 20 Purchased 300 units at $22 each

May 25 Sold 400 units at $50 each

There was no beginning inventory. If the company uses the FIFO periodic inventory method, what would be the cost of the ending inventory?

5. Flaxco purchases inventory from overseas and incurs the following costs: the cost of the merchandise is $50,000, credit terms are 2/10, n/30 that apply only to the $50,000; FOB shipping point freight charges are $1,500; insurance during transit is $500; and import duties are $1,000. Flaxco paid within the discount period and incurred additional costs of $1,200 for advertising and $5,000 for sales commissions. Compute the cost that should be assigned to the inventory.

A. $50,000

B. $53,000

C. $52,000

D. $51,500

E. $53,200

6. A company had inventory of 10 units at a cost of $20 each on November 1. On November 2, it purchased 10 units at $22 each. On November 6 it purchased 6 units at $25 each. On November 8, it sold 22 units for $54 each. Using the FIFO perpetual inventory method, what was the cost of the 22 units sold?

A. $470

B. $490

C. $450

D. $570

E. $520

7. Perch Company reported the following purchases and sales for its only product. Perch uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using FIFO.

Date Activities Units Acquired at Cost Units Sold at Retail

May 1 Beginning Inventory150 units @ $10.00

5 Purchase220 units @ $12.00

10 Sales140 units @ $20.00

15 Purchase100 units @ $13.00

24 Sales150 units @ $21.00

A. $2,260

B. $3,180

C. $1,860

D. $3,580

E. $2,100

8. Perch Company reported the following purchases and sales for its only product. Perch uses a perpetual inventory system. Determine the cost assigned to ending inventory using LIFO.

Date Activities Units Acquired at Cost Units Sold at Retail

May 1 Beginning Inventory 150 units @ $10.00

5 Purchase 220 units @ $12.00

10 Sales 140 units @ $20.00

15 Purchase 100 units @ $13.00

24 Sales 150 units @ $21.00

A. $2,260

B. $3,180

C. $1,860

D. $3,580

E. $2,100