Problem: In September, Wally's Wallpaper Company had the following transacations relating to sales and cost of goods sold:
- Wally sold 500 rolls of wallpaper at $10.00 each. all the wallpaper was of one design.
- Inventory on the first of September was 100 rolls of wallpapaer at $3 each.
- On September 3, Wally bought 300 rolls of wallpaper wholesale, at $4 each.
- On Septmber 18, he found that the wholesale price of the wallpaper had gone up to $5 each, but he had to have some, so he bought 250 rolls at $5 each.
- Inventory at the end of the month was 150 rolls of wallpaper. (Wally values his inventory on a first in first out basis)
Make up an accrual basis report of sales and cost of goods sold. Use the following form:
Net sales ______
Minus cost of goods sold:
Beginning inventory_______
Add purchases_________
Goods available for sale _______
Subtract ending inventory_________
Cost of goods sold_________
Net Income_________