Morrie Produce Began Operations on July 1 $$\text { Note 1: Marrie uses the periztic LIFO methut of inventury veluatizn. }$$

question 76

Essay

Morrie Produce began operations on July 1. Below is its income statement for the month of July and the current portion of its balance sheet dated July 31.
$\begin{array}{lr}\text { Sales revenue } & \$ 45,000 \\\text { Cost of goods sold (Note 1) } & \underline{ 12,000} \\\text { Gross profit } &33,000 \\\text { Operating expenses } & \underline{ 4,700}\\\text { Net income }& \underline{\$28,300}\\\\ \underline{\text { Current assets: }}\\\text { Cash } & \$ 8,000 \\\text { Accounts receivable } & 4,000 \\\text { Inventory } & \underline{1,200} \\\text { Total current assets } &\underline{ \$ 13,200}\\\underline{\text { Current liabilities: }}\\ \text { Accounts payable } & \$ 9,000 \\\text { Notes payable } &\underline{ 4.000 }\\\text { Total current liabilities }&\underline{ \$13,000}\end{array}$

$$\text { Note 1: Marrie uses the periztic LIFO methut of inventury veluatizn. }$$
$\begin{array}{ll}\text { July } 1 & \text { Purchased80 units@ } \$ 30 &\$2,400\\\text { July } 17 & \text { Purchased } 180 \text { units@ } \$ 60 &\underline{10,800}\\\text { Cost of goods available } &&13,200 \\\text { July } 31 \text { Inventory } & (40 @ \$ 30) &\underline{1,200}\\\text { Cost of goods sold } &&\underline{\$12,000}\end{array}$
Complete the following income statement and current portion of the balance sheet for Morrie for July using the FIFO cost flow assumption instead of LIFO.
Sales revenue . . . . . . . . . . . . . . . . . _____________________
Cost of goods sold . . . . . . . . . . . . . ._____________________
Gross profit . . . . . . . . . . . . . . . . . . . _____________________
Operating expenses. . . . . . . . . . . . . _____________________
Net income. . . . . . . . . . . . . . . . . . . . _____________________
Current assets:
Inventory. . . . . . . . . . . . . . . . . . ._____________________

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Definitions:

Humanistic Psychology

The school of psychology that focuses on the uniqueness of human beings and their capacity for choice, growth, and psychological health.

Psychoanalysis

A therapeutic approach and theory of psychology developed by Sigmund Freud that aims to treat mental disorders by investigating the interaction of conscious and unconscious elements in the mind.

Cognitive Psychology

A branch of psychology that studies mental processes such as perception, memory, thought, and problem-solving.

Gestalt Psychology

A theory of mind and brain proposing that the operational principle of the brain is holistic, parallel, and analog, with self-organizing tendencies; or, the idea that the perceptual whole is different than the sum of its parts.