Like other business messages, reports can range from informal to formal depending on their purpose, audience, and setting. Which of the following contributes to an informal writing style? Check all that apply. Absence of humor Familiar words Use of contractions Passive-voice verbs

Dunne Co.

Schedule of Cost of Goods Sold

FIFO Method

For the Three Months Ended June 30

                                          Purchases      Cost of Goods Sold Inventory

Date            Description    Quantity    Unit Cost       Total Cost   Sales

Apr. 3          Inventory         48                $150             $7,200

Apr. 8          Purchase         96                  180              17,280

Apr. 11         Sale                           64        500                             32,000

Apr. 30       Sale                           40        500                             20,000

May 8         Purchase         80                 200             16,000

May 10       Sale                           48        500                             24,000

May 19       Sale                           24        500                             12,000

May 28      Purchase         80                  220            17,600

June 5       Sale                          48         525                             25,200

June 16      Sale                         64         525                             33,600

June 21      Purchase      144                  240            34,560

June 28     Sale                         72         525                             37,800

June 30     Total            448   360                         $92,640 $184,600

June 30     Balances       88                 $240          $21,120      

2. Determination of total sales and cost of goods sold and Journal Entries:

Debit Accounts Receivable $184,600

Credit Sales Revenue $184,600

To record the sales of goods on account for the period.

Debit Cost of Goods Sold $92,640

Credit Inventory $92,640

To record the cost of goods sold for the period.

3. Income Statement for determining the gross profit:

Sales Revenue       $184,600

Cost of goods sold $92,640

Gross profit             $91,960

4. Determination of the ending inventory cost of June 30:

Ending Inventory units = 88

Cost per unit (FIFO) = $240

Total =                     $21,120

5. The ending inventory would be lower if the ending inventory was valued using the Last-in, First-out (LIFO) method.  The purchase price was increasing instead.  Using LIFO means that ending inventory would be valued at the cost of the purchases in earlier months because of the assumption with LIFO that goods sold are from the last purchases instead of the earlier purchases.

Explanation: