Call Back

24x7 Support Available

chat now

In A Hurry? Get A Callback

### shopping cart 0

Subject Solutions Code Description Price Delete

## Gross profit calculation

#### Question Preview:

Mary is a student and also operates a part time business called Jano Enterprises. She sells imported marker pens to various retail office and stationery supply shops. Business commenced in May 2012.Mary conducts all of the business’ operations (she works alone and has no employees). Mary purchases pens for 60c each and sells them for \$2.50 each. These amounts have not changed since Mary started operations. At 1st July 2012 an amount of \$1,500 appears as inventory in the trial balance. During the year ended 30thJune 2013, Mary made the following unitpurchases and sales. ...

View Complete Question >>

View Less >>

## Solution Preview

Mary is a student and also operates a part time business called Jano Enterprises. She sells imported marker pens to various retail office and stationery supply shops. Business commenced in May 2012.Mary conducts all of the business’ operations (she works alone and has no employees).

Mary purchases pens for 60c each and sells them for \$2.50 each. These amounts have not changed since Mary started operations.

At 1st July 2012 an amount of \$1,500 appears as inventory in the trial balance.

During the year ended 30thJune 2013, Mary made the following unitpurchases and sales.

 Date Purchases Sales @60c ea @\$2.50 ea July 11 1,000 Aug 3 600 Sept 12 2,000 Sept 30 1,300 Dec 2 1,500 Dec 6 400 Feb 3 700 Mar 22 1,500 April 19 2,300 May 26 800 TOTAL 5,000 7,100

On 30thJune 2013(the end of the accounting period), Mary counted 370 pens remaining on hand.

Required:

1. Calculate the Gross Profit for the year ended 30th June 2013 under both the (i) perpetual and (ii)periodic methods of inventory recording by providing a correctly formatted extract (up to gross profit only) from Jano Enterprises income statement.You must also provide explanations and calculations for each amount shown on the statement extracts. Present this information below your statement extract. Statements provided without calculations and explanations will not receive marks.

(HINT: Since you are being asked to calculate under both methods in this question, you have been given complete data in regard to inventory flow. Not all of this data is needed for each method, therefore ensure that you only use the data that you need for each method).

b) Of the two methods used in 1. Above, which method (if any):

• Provides the higher Gross Profit figure?
• Provides the most information for control purposes, and how?
• Considering the circumstances, which inventory method would be the most appropriate for Mary’s business? Explain why.

Get solution

#### \$35

Orginal Price : \$45.50

Pay Now

250 words

Don’t delay more, place your order now. Quick assignment help will be offered to you.

Order Now

## CUSTOMER REVIEWS

### Excellent

Based on 702 reviews See all reviews here

### One of the Best Service

I trust LiveWebTutors for my assignments because of their ability to deliver the perfect assignments time and again. Only a few of my assignments required minor revisions. The rest assured it is the best assignment writing service in the market.

Elizabeth
Sydney

### Great Service and on time

I felt so exhausted and burdened with the large number of assignments I had to write and desperately needed someone to help me with all the writing and there was LiveWebTutors company on the internet. They finished my assignments before the due date and also offered me a first-timer discount.

Christina
Perth

### One of the Best Assignment Provider

I ordered my Mathematics and Marketing assignments from them last month. I received the content on the set date. Most importantly, the assignments were well-written and plagiarism free. I scored a top grade for the assignment written by them. They are a reliable company.

Oli
Brisbane