I will rate each part (A, B, C and D). Please show equations. Thanks! For the mo

Question

 I will rate each part (A, B, C and D).  Please show equations. Thanks!



For the month of January, Consolidated Engine Parts, Inc. had the following

financial information: merchandise inventory, January 1, $322,000; merchandise

inventory, January 31, $316,400; gross purchases, $243,460; purchase returns and

allowances, $26,880; and freight in, $3,430.



A. What are Consolidateds' goods available for sale?



B.  What is the cost of goods sold for January?



C.  If net sales were $389,450, what was the gross margin for Jan?



D.  If total operating expenses were $179,800, what was the net profit? 

Explanation / Answer

BeginningInventory             322,000 + Purchases 243,460 - P. returns (26,880)                      216,580 + freight in       3,430       Net Purchases    220,010    Goods available forsale         542,010 - Endinginventory                 316,400 Cost of goodssold                 225,610 A. Goods available for sale          $ 542,010 B.Cost of goods sold          $ 225,610 C.    Sales                   389,450 -cost of goods sold    225,610 Grossmargin                163,840 D.Net profit        Gross Margin - operatingexpenses = net profit         163,840 - 179,800 =(15,960) It is a negative balance and hence the net loss is $ 15,960

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