Inventory Records Widget Tek Inc.'s original accountant accepted a position with another firm and left in...

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Inventory Records Widget Tek Inc.'s original accountant accepted a position with another firm and left in...

Inventory Records

Widget Tek Inc.'s original accountant accepted a position with another firm and left in early March. You have been asked to review the subsidiary inventory ledger record for Widget Tek Inc.'s main product for March.

Study the inventory record for March and answer the questions that follow.

1. Assuming that the product sells for $150 and that 70% of sales are on account, determine the gross profit from sales for March _______

2. Making the same assumptions as in (1), determine the ending inventory cost for March _______

business accounting

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Answer 1

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Answer #1

1.

Cost of Sales=$641,325(Add all Total Cost)

Available for sales= $150*6525=$978,750

Actual Sales: $978750*70%=$685,125

Cost of Sales for Sales on account:$641,325*70%=$448,927.5

Gross Profit for March:$685,125-$448,927.5=$236197.5

2. Closing stock: 641325-448927.5=$192397.5

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Answer 2

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