century 21 accounting © 2009 south-western, cengage learning lesson 4-2 interim departmental...
TRANSCRIPT
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 4-2LESSON 4-2
Interim Departmental Statement of Gross Profit
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Chapter 4 ObjectivesChapter 4 ObjectivesFinancial Reporting for a Financial Reporting for a Departmentalized BusinessDepartmentalized Business
After studying Chapter 4, you will be able to:Define accounting terms related to cost accounting and financial reporting for a departmentalized merchandising business.Identify accounting concepts and practices related to cost accounting and financial reporting for a departmentalized merchandising business.Distinguish between direct and indirect expenses.Prepare an interim departmental statement of gross profit.Prepare a work sheet for a departmentalized merchandising business.Prepare financial statements for a departmentalized merchandising business.Analyze financial statements using selected component percentages.Complete end-of-period work for a departmentalized merchandising business.
2
LESSON 4-2
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Lesson 4-2Lesson 4-2
gross profit: the amount of revenue from sales less the cost of goods sold
departmental statement of gross profit: a statement showing gross profit for each department
periodic inventory: a merchandise inventory determined by counting, weighing, or measuring items of merchandise on hand
perpetual inventory: a merchandise inventory determined by keeping a continuous record of increases, decreases, and balances on hand
3
LESSON 4-2
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Lesson 4-2Lesson 4-2
gross profit method of estimating an inventory: estimating inventory by using the previous year’s percentage of gross profit on operations
component percentage: the percentage relationship between one financial statement item and the total that includes that item
4
LESSON 4-2
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
5
LESSON 4-2
1. List beginning inventory.
2. Determine net purchases.
3. Calculate merchandise for sale.
4. Determine net sales.
5. Calculate estimated gross profit.
6. Calculate the estimated cost of merchandise sold.
7. Calculate estimated ending inventory.
ESTIMATING ENDING ESTIMATING ENDING MERCHANDISE INVENTORYMERCHANDISE INVENTORY page 94
11
2233
77
6655
44
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
6
LESSON 4-2
INTERIM DEPARTMENTAL INTERIM DEPARTMENTAL STATEMENT OF GROSS PROFITSTATEMENT OF GROSS PROFIT page 95
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
7
LESSON 4-2
1. The cost of merchandise sold percentage:
2. The gross profit margin percentage:
.6076 or 60.8%=$42,186.47
$69,429.95
.3924 or 39.2%=$27,243.48
$69,429.95
COST OF MERCHANDISE SOLD AND COST OF MERCHANDISE SOLD AND GROSS PROFIT PERCENTAGESGROSS PROFIT PERCENTAGES page 96
11
22
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
8
LESSON 4-2
DEFINE TERMS REVIEWDEFINE TERMS REVIEWIn QuizletIn Quizlet
gross profit departmental statement of gross profit periodic inventory perpetual inventory gross profit method of estimating an inventory component percentage
page 97
Edit this set: Chapter 4 AdvAcc (then SAVE)
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Exit Ticket for today:Exit Ticket for today:Audit Your Understanding 4-2Audit Your Understanding 4-2
1. In addition to regular financial statements, what other reports does a departmentalized business prepare?
2. What are the two principal methods for determining amounts of merchandise on hand?
3. What are the three sections of a departmental statement of gross profit?
9
LESSON 4-2
In a Word Document, SaveAS: Chapter4-2AYUYourNameAnd drop in my Inbox today!
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Complete the following assignments for Complete the following assignments for Chapter 4-2 todayChapter 4-2 today
Define Terms Review on page 97. Answer Audit Your Understanding questions on page
97. Complete Work Together 4-2 on Aplia – page 91. Complete On Your Own 4-2 on Aplia – page 98. Complete Application Problem 4-2 on Aplia – page
126.
10
LESSON 4-2