Question

The Patel Merchandising Corporation began June operations withmerchandise inventory of 14 units, each of which cost $130. DuringJune, Patel Merchandising made the following purchases: (1) June 6,26 units @ $132 per unit, (2) June 15, 28 units @ $136 per unit,(3) June 26, 32 units @ $140 per unit. During June the Company soldthe following units at a sales price of $220 per unit: June 8, 18units, June 20, 24 units, June 29, 30 units. Operating expenses inJune were $3,200. The Company estimates its income taxes expensewill be approximately 35% of income before taxes.

Using the FIFO inventory method

a) determine the inventory dollar amount on June 1.

b) determine the dollar amount of purchases made in June.

c) determine the cost of goods available for sale duringJune.

d) determine the cost of goods sold during June.

e) determine the inventory dollar amount on June 30.

f) determine the sales dollar amount for June.

g) determine the gross profit for June.

h) determine the income before taxes for June.

i) determine the income taxes expense for June.

j) determine the net income for June.