On March 31 a company needed to estimate its ending inventory to
prepare its first quarter financial statements. The following
information is available:
Beginning inventory, January 1: $4,000
Net sales: $80,000
Net purchases: $78,000
The company's gross margin ratio is 25%. Using the gross profit
method, the estimated ending inventory value would be:
On March 31 a company needed to estimate its ending inventory to prepare its first quarter...
On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available: Beginning inventory, January 1: $5,700 Net sales: $86,000 Net purchases: $84,000 The company's gross margin ratio is 25%. Using the gross profit method, the estimated ending inventory value would be:
Wayward Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Wayward's gross profit rate averages 34%. The following information for the first quarter is available from its records. January 1 beginning inventory$ 302,580 Cost of goods purchased 941,040 Sales 1,211,160 Sales returns 8,410 Required: Use the gross profit method to estimate the company's first quarter ending inventory. Beginning inventory Net cost of goods purchased Cost of goods...
Sporting Pro wants to prepare interim financial statements for the first quarter of 2020 but would like to avoid making a physical count of inventory. During the last five years, the company's gross profit rate has averaged 33%. The following information for the year's first quarter is available from its records: $ January 1 beginning inventory Purchases Purchase returns Transportation-in Sales Sales returns 290, 260 935,200 12,850 6,700 1,171,150 9,350 Required: Use the gross profit method to prepare an estimate...
Wayward Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Wayward's gross profit rate averages 30%. The following information for the first quarter is available from its records. January 1 beginning inventory $ 450,260 Cost of goods purchased 1,089,050 Sales 1,341,150 Sales returns 10,950 Required: Use the gross profit method to estimate the company's first quarter ending inventory.
When preparing its quarterly financial statements, Pace Co. uses the gross margin method to estimate ending inventory. The following information is available for the quarter ending March 31. Year 2 Beginning inventory Purchases Sales Estimated gross margin percentage $ 227,500 $ 815,000 $1,162,500 45% What is the estimated amount of inventory that is on hand on March 31, Year 2? (Do not round your intermediate calculations.) Multiple Choice $403,125 $639,375 TB MC Qu. 05-78 When preparing its quarterly financial statements.....
Gross Profit Method Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of October was $58500. The following information for the month of November was available from company records: Purchases of $110,000 Freight-in of $3,000 Sales of $180,000 Sales Returns of $5,000 Purchase Returns of $4,000 In addition, the controller is aware of $8,000 of inventory that...
Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of October was $59,400. The following information for the month of November was available from company records: Purchases $ 119,000 Freight-in 3,900 Sales 225,000 Sales returns 9,500 Purchases returns 8,500 In addition, the controller is aware of $12,500 of inventory that was stolen during November from one of...
Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of October was $59,500. The following information for the month of November was available from company records: Purchases $ 120,000 Freight-in 4,000 Sales 230,000 Sales returns 15,000 Purchases returns 9,000 In addition, the controller is aware of $13,000 of inventory that was stolen during November from one of...
Henderson Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of July was $126,000. The following information for the month of August was available from company records: Purchases Freight-in Sales Sales returns Purchases returns $226,000 5,900 357.000 9,700 5,000 In addition, the controller is aware of $11,000 of inventory that was stolen during August from one of the company's...
Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of October was $60,300. The following information for the month of November was available from company records: Purchases Freight-in Sales Sales returns Purchases returns $128,000 4,800 270,000 23,000 7,500 In addition, the controller is aware of $8,500 of inventory that was stolen during November from one of the...