Question

Resented below is information related to Sandhill Enterprises.

Jan. 31 Feb. 28 Mar. 31 Apr. 30
Inventory at cost $15,750 $15,855 $17,850 $14,700
Inventory at LCNRV 15,225 13,230 16,380 13,965
Purchases for the month 17,850 25,200 27,825
Sales for the month 30,450 36,750 42,000

From the information, prepare as far as the data permit monthly income statements in columnar form for february march and april.

Answer 1

Sandhill Enterprises

Sandhill Enterprises

Income Statements

For the months ended Feb. 28, March 31, and April 30, 2020:

Feb. 28 March 31 April 30

Sales for the month $30,450 $36,750 $42,000

Cost of goods sold 19,845 22,050 30,240

Gross profit $10,605 $14,700 $11,760

Step-by-step explanation:

a) Data and Calculations:

Jan. 31 Feb. 28 Mar. 31 Apr. 30

Inventory at cost $15,750 $15,855 $17,850 $14,700

Inventory at LCNRV 15,225 13,230 16,380 13,965

Purchases for the month 17,850 25,200 27,825

Sales for the month 30,450 36,750 42,000

Determining the ending inventory based on LCNRV:

Jan. 31 Feb. 28 Mar. 31 Apr. 30

Inventory at cost $15,750 $15,855 $17,850 $14,700

Inventory at LCNRV 15,225 13,230 16,380 13,965

Ending inventory 15,225 13,230 16,380 13,965

Beginning inventory 15,225 13,230 16,380

Determining the Cost of Goods Sold:

Beginning inventory 15,225 13,230 16,380

Purchases for the month 17,850 25,200 27,825

Ending inventory 13,230 16,380 13,965

Cost of goods sold 19,845 22,050 30,240