Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won’t damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2025. All watches are sold for $491 each. July 17Purchased 41 watches for $5,781 ($141 per watch) on account.July 31Sold 31 watches for $15,221 cash.August 12Purchased 31 watches for $4,681 ($151 per watch) cash.August 22Sold 21 watches for $10,311 on account.September 19Paid for watches purchased on July 17.September 27Receive cash of $20,400 for watches sold on account on August 22.October 27Purchased 71 watches for $11,431 ($161 per watch) cash.November 20Sold 81 watches for $39,771 cash.December 4Purchased 102 watches for $17,442 ($171 per watch) on account.December 8Sold 31 watches for $15,221 on account. Required:1-a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2025, assuming Suzie uses a FIFO perpetual inventory system to account for inventory.1-b. Prepare the gross profit section of a partial income statement for transactions related to MU watches. Req 1aReq 1bPrepare the gross profit section of a partial income statement for transactions related to MU watches.GREAT ADVENTURES, INCORPORATEDPartial Income StatementFor the Year Ended December 31, 2025Gross Profit Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2025, assuming Suzie uses a FIFOperpetual inventory system to account for inventory.Sales RevenueCost of Goods SoldEnding Inventory

1-a. To calculate sales revenue, cost of goods sold, and ending inventory using the FIFO perpetual…

Answered: Req 1a Req 1b Prepare the gross profit…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 10PA: Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company,...

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Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won’t damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2025. All watches are sold for $491 each.

July 17	Purchased 41 watches for $5,781 ($141 per watch) on account.
July 31	Sold 31 watches for $15,221 cash.
August 12	Purchased 31 watches for $4,681 ($151 per watch) cash.
August 22	Sold 21 watches for $10,311 on account.
September 19	Paid for watches purchased on July 17.
September 27	Receive cash of $20,400 for watches sold on account on August 22.
October 27	Purchased 71 watches for $11,431 ($161 per watch) cash.
November 20	Sold 81 watches for $39,771 cash.
December 4	Purchased 102 watches for $17,442 ($171 per watch) on account.
December 8	Sold 31 watches for $15,221 on account.

Required:

1-a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2025, assuming Suzie uses a FIFO perpetual inventory system to account for inventory.
1-b. Prepare the gross profit section of a partial income statement for transactions related to MU watches.