Question

When preparing its quarterly financial statements, Pace Co. uses the gross margin method to estimate ending inventory. The fo

TB MC Qu. 05-78 When preparing its quarterly financial statements.. When preparing its quarterly financial statements, Pace C

hep SVE SEX Submit What is the estimated amount of inventory that is on hand on March 31, Year 29 (Do not round your intermed

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Ans:Option:1 : 403,125 is Correct Answer

Explanation:

Cost of Goods Sold = 1,162,500 - 45% = 639375

Ending inventory = Beginning inventory + Purchases - Ending inventory

= 227500+815000-639375

= 403,125


Hope this helped ! Let me know in case of any queries.

Add a comment
Know the answer?
Add Answer to:
When preparing its quarterly financial statements, Pace Co. uses the gross margin method to estimate ending...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT