Required information Problem 6-6B Record transactions using a perpetual system, prepare a partial income statement, and adjust for the lower of cost and net realizable value(LO6-2, 6-3, 6-4, 6-5, 6-6) [The following information applies to the questions displayed below.] At the beginning of November, Yoshi Inc's inventory consists of 63 units with a cost per unit of $94. The following transactions occur during the month of November. November 2 Purchase 100 units of inventory on account from Toad Inc. for $100 per unit, terms 3/10, n/30. November 3 Pay cash for freight charges related to the November 2 purchase, $300. November 9 Return 25 defective units from the November 2 purchase and receive credit. November 11 Pay Toad Inc. in full. November 16 Sell 100 units of inventory to customers on account, $12,700. [Hint: The cost of units sold from the November 2 purchase includes $100 unit cost plus $4 per unit for freight less $3 per unit for the purchase discount, or $101 per unit.] November 20 Receive full payment from customers related to the sale on November 16. November 21 Purchase 57 units of inventory from Toad Inc. for $104 per unit, terms 2/10, n/30. November 24 Sell 70 units of inventory to customers for cash, $7,800. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on November 20.) Problem 6-6B Part 3 3. Prepare the top section of the multiple-step income statement through gross profit for the month of November after the adjustme for lower of cost and net realizable value. YOSHI INC. Multiple-step Income Statement (partial) For the month of November Net Sales 20,500 Cost of Good Sold 19,925 Gross Profit $ 575 X
Required information Problem 6-6B Record transactions using a perpetual system, prepare a partial income statement, and adjust for the lower of cost and net realizable value(LO6-2, 6-3, 6-4, 6-5, 6-6) [The following information applies to the questions displayed below.] At the beginning of November, Yoshi Inc's inventory consists of 63 units with a cost per unit of $94. The following transactions occur during the month of November. November 2 Purchase 100 units of inventory on account from Toad Inc. for $100 per unit, terms 3/10, n/30. November 3 Pay cash for freight charges related to the November 2 purchase, $300. November 9 Return 25 defective units from the November 2 purchase and receive credit. November 11 Pay Toad Inc. in full. November 16 Sell 100 units of inventory to customers on account, $12,700. [Hint: The cost of units sold from the November 2 purchase includes $100 unit cost plus $4 per unit for freight less $3 per unit for the purchase discount, or $101 per unit.] November 20 Receive full payment from customers related to the sale on November 16. November 21 Purchase 57 units of inventory from Toad Inc. for $104 per unit, terms 2/10, n/30. November 24 Sell 70 units of inventory to customers for cash, $7,800. (Note: For calculating the cost of inventory sold, ignore the possible purchase discount on November 20.) Problem 6-6B Part 3 3. Prepare the top section of the multiple-step income statement through gross profit for the month of November after the adjustme for lower of cost and net realizable value. YOSHI INC. Multiple-step Income Statement (partial) For the month of November Net Sales 20,500 Cost of Good Sold 19,925 Gross Profit $ 575 X
Corporate Financial Accounting
15th Edition
ISBN:9781337398169
Author:Carl Warren, Jeff Jones
Publisher:Carl Warren, Jeff Jones
Chapter6: Inventories
Section: Chapter Questions
Problem 6.6BPR: Lower-of-cost-or-market inventory Data on the physical inventory of Katus Products Co. as of...
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![Required information
Problem 6-6B Record transactions using a perpetual system, prepare a partial income statement, and
adjust for the lower of cost and net realizable value(LO6-2, 6-3, 6-4, 6-5, 6-6)
[The following information applies to the questions displayed below.]
At the beginning of November, Yoshi Inc.'s inventory consists of 63 units with a cost per unit of $94. The following
transactions occur during the month of November.
November
November
November
November 11 Pay Toad Inc. in full.
November 16 Sell 100 units of inventory to customers on account, $12,700. [Hint: The cost of units sold from
2 Purchase 100 units of inventory on account from Toad Inc. for $100 per unit, terms 3/10, n/30.
3 Pay cash for freight charges related to the November 2 purchase, $300.
9 Return 25 defective units from the November 2 purchase and receive credit.
the November 2 purchase includes $100 unit cost plus $4 per unit for freight less $3 per unit for
the purchase discount, or $101 per unit.]
November 20 Receive full payment from customers related to the sale on November 16.
November 21 Purchase 57 units of inventory from Toad Inc. for $104 per unit, terms 2/10, n/30.
November 24 Sell 70 units of inventory to customers for cash, $7,800. (Note: For calculating the cost of
inventory sold, ignore the possible purchase discount on November 20.)
Problem 6-6B Part 3
3. Prepare the top section of the multiple-step income statement through gross profit for the month of November after the adjustment
for lower of cost and net realizable value.
YOSHI INC.
Multiple-step Income Statement (partial)
For the month of November
Net Sales
20,500
Cost of Good Sold
19,925 X
Gross Profit
2$
575](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcc35bfef-1e1d-4e62-a745-481127990680%2F8e36fc4e-22ed-4f72-b25b-29371de2dc91%2Fy1poie7_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
Problem 6-6B Record transactions using a perpetual system, prepare a partial income statement, and
adjust for the lower of cost and net realizable value(LO6-2, 6-3, 6-4, 6-5, 6-6)
[The following information applies to the questions displayed below.]
At the beginning of November, Yoshi Inc.'s inventory consists of 63 units with a cost per unit of $94. The following
transactions occur during the month of November.
November
November
November
November 11 Pay Toad Inc. in full.
November 16 Sell 100 units of inventory to customers on account, $12,700. [Hint: The cost of units sold from
2 Purchase 100 units of inventory on account from Toad Inc. for $100 per unit, terms 3/10, n/30.
3 Pay cash for freight charges related to the November 2 purchase, $300.
9 Return 25 defective units from the November 2 purchase and receive credit.
the November 2 purchase includes $100 unit cost plus $4 per unit for freight less $3 per unit for
the purchase discount, or $101 per unit.]
November 20 Receive full payment from customers related to the sale on November 16.
November 21 Purchase 57 units of inventory from Toad Inc. for $104 per unit, terms 2/10, n/30.
November 24 Sell 70 units of inventory to customers for cash, $7,800. (Note: For calculating the cost of
inventory sold, ignore the possible purchase discount on November 20.)
Problem 6-6B Part 3
3. Prepare the top section of the multiple-step income statement through gross profit for the month of November after the adjustment
for lower of cost and net realizable value.
YOSHI INC.
Multiple-step Income Statement (partial)
For the month of November
Net Sales
20,500
Cost of Good Sold
19,925 X
Gross Profit
2$
575
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