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Inventory Problems - Staley Watch Company

For your convenience, I have attached a formatted MS Excel spreadsheet containing the solutions to the inventory problems of the Staley Watch Company, with a detailed income statement data for the 2-year reporting period posed in the origianl question.

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For your convenience, I have attached a formatted MS Excel spreadsheet containing the text below (with notes).

Staley Watch Company reported the following income statement data for a 2-year period.

2008 2009

Sales $210,000 $250,000
Cost of goods sold
Beginning inventory 32,000 44,000
Cost of goods purchased 173,000 202,000
Cost of goods available for sale 205,000 246,000
Ending inventory 44,000 52,000
Cost of goods sold 161,000 194,000
Gross Profit $49,000 $56,000

Staley uses a periodic inventory system. The inventories at January ...

Solution Summary

For your convenience, I have attached a formatted MS Excel spreadsheet containing the solutions to the inventory problems of the Staley Watch Company, with a detailed income statement data for the 2-year reporting period posed in the origianl question.

$2.19