1. What is the difference between inventory and cost of goods sold? Cost of goods sold and sales revenue?
2. Is gross profit an account?
3. Comstock Company counted their inventory at the end of the year and had 220 units. Included in that amount were 20 units Comstock held on consignment from Davidson Inc. Comstock purchased 50 units of inventory on December 27, FOB shipping point. How many units of inventory should Comstock report on its year end balance sheet?
4. Assume Comstock was unable to count its ending inventory because it was destroyed in a fire. Use the gross profit method to estimate the ending inventory. The gross profit rate is 52%.
|
Beginning inventory Ending inventory Net purchases Net sales |
$ 10,000 ? 110,000 175,000 |