NAMA : FAHMI NUR ALFIYAN

NIM : MAT81766
MATKUL : FINANCIAL ACCOUNTING
KELAS : A

a Prepare an Income Statement

Bach Chocolatiers
Income Statement
For the Month Ended 31, 2020

Sales
Sales Revenue 380,000
Less: Sales Returns and Allowances 13,000
Less: Sales Discounts 7,400
20,400
Net Sales Revenue 359,600

Cost of Goods Sold 212,000

Gross Profit 147,600

Operational Expenses
Salaries and Wages Expense 58,000
Insurance Expense 7,000
Freight-Out 9,000
Rent Expense 32,000
Total Operating Expense 106,000
Income from Operations 41,600

Other Income and Expense 0

Net Income 41,600

b Prepare an Comprehensive Income Statement

Bach Chocolatiers
Income Statement
For the Month Ended 31, 2020

Net Income 41,600

Other Comprehensive Income 2,200

Comprehensive Income 43,800

c Compute the Gross Profit Rate

Gross Profit Rate = Gross Profit / Net Sales

Gross Profit Rate = 147.600 / 359.600
Gross Profit Rate = 41,05%
a Determine the Cost of Goods Available for Sale.
Date Units Unit Cost ( € ) Total Cost ( € )
Inventory: Mar-01 1,500 7 10,500
Purchase: Mar-05 3,500 8 28,000
Mar-13 4,000 9 36,000
Mar-21 2,000 10 20,000
Mar-26 2,000 11 22,000

Total: 13,000 116,500

Under periodic inventory system, the Cost of Goods Available for Sale is € 116.500

b FIFO METHOD
Ending Inventory:
Date Units Unit Cost ( € ) Total Cost
Mar-21 1,000 10 10,000
Mar-26 2,000 11 22,000
32,000
Cost of Goods Sold: Cost of Goods Available for Sale - Ending Inventory
Cost of Goods Sold: € 116.500 - € 32.000 = € 84.500

AVERAGE-COST METHOD
Ending Inventory:
Average unit cost = Total Cost / Total Inventory
Average unit cost = 116.500 / 13.000
Average unit cost = € 8,9615

Ending inventory = 3.000 x € 8,9615

Ending inventory = € 26.884,5

Cost of Goods Sold: € 116.500 - € 26.749,5 = € 89.750,5

c Which cost flow method result in

(1) the higher inventory amount for the statement of financial position is FIFO Method
(2) the higher cost of goods sold for the income statement is Average-Cost Method
a Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, (iv) gross profit rate
1. FIFO
2. Average-Cost

Date Description Units Unit Cost ( € ) Total Cost ( € )

Oct-01 Beginning Inventory 60 24 1,440
Oct-09 Purchase 120 26 3,120
Oct-17 Purchase 70 27 1,890
Oct-25 Purchase 80 28 2,240
Cost of Goods Available 330 8,690

Oct-11 Sale 100 35 3,500

Oct-22 Sale 65 40 2,600
Oct-29 Sale 120 40 4,800
Total Sales 285 10,900

Under periodic inventory system, the Cost of Goods Available for Sale is € 8.690

FIFO METHOD
Ending Inventory:
Date Units Unit Cost Total Cost
Oct-25 45 28 1,260
1,260
Cost of Goods Sold: € 8.690 - € 1.260 = € 7.430

Gross Profit Gross Profit Rate

Net Sales 10,900 Gross Profit Rate = Gross Profit / Net Sales
Cost of Goods Sold 7,430 - Gross Profit Rate = 3.470 / 10.900
3,470 Gross Profit Rate = 31,83%

AVERAGE-COST METHOD
Ending Inventory:
Average unit cost = Total Cost / Total Inventory
Average unit cost = 8.690 / 330
Average unit cost = € 26,33

Ending inventory = 45 x € 26,33

Ending inventory = € 1.184,85

Cost of Goods Sold: € 8.690 - € 1.184,85 = € 7.505,15

Gross Profit Gross Profit Rate

Net Sales 10,900 Gross Profit Rate = Gross Profit / Net Sales
Cost of Goods Sold 7,505.15 - Gross Profit Rate = 3.394,85 / 10.900
3,394.85 Gross Profit Rate = 31,15%

b Compare results for the two cost flow assumptions

(1) the higher inventory amount for the statement of financial position is FIFO Method
(2) the higher cost of goods sold for the income statement is Average-Cost Method
(3) the higher gross profit is FIFO Method
(4) the higher gross profit rate is FIFO Method