you are given the following information for Crane Company for the month ended November 30,2024...
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Accounting
you are given the following information for Crane Company for the month ended November 30,2024
Date
Description
Units
Unit Cost
Nov.1
Beginning inventory
63
$48
9
Purchase
110
45
15
Sale
(120)
22
Purchase
155
42
29
Sale
(160)
30
Purchase
49
41
Crane Company uses a perpetual inventory system. All sales and purchases are on account
a) Assume the sales price was $60 per unit for the sale on November 29. Prepare journal entries to record the November 22 purchase the November 29 sale.
b) Calculate gross profit for November. Assume the sales price was $66 per unit for the goods sold on November 15.
Gross profit $_______
c) Assume that the end of November the company counted its inventory. There were 95 units on hand. What journal entry, if any, should the company make to record the shortage?
Account Titles
Debit
Credit
Cost of Goods sold
Merchandise Inventory
d) If the company had not discovered this shortage, what would be overstated or understated on the balance sheet and income statement and by what amount?
The _________ on the balance sheet would be _______ by $______ as well as the _______ account by the same amount.
The _________ on the income statement would be ______ by______.
Answer & Explanation
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