Question

butube G Image result for pla... Maps Web Store M Gmail Vocabulary - Market. Q finance Che WACC. 9 Assignment Hoyal Gorge Company uses the gross prout method to estimate ending inventory and cost of goods sold when preparing monthly Tinancial statements required by its bank riventory on hand at the end of October was $58.900 The following information for the month of November was available from company records Freight-in Sales returns Purchases returns 200 9.00 6,000 In addition, the controller is aware of $10,000 of inventory that was stolen during November from one of the company's warehouses Required 1. Calculate the estimated Inventory at the end of November, assuming a gross proftratio of 40% 2. Calculate the estimated Inventory at the end of November, assuming a map on cost of 60% Complete this question by entering your answers in the tabs below Required 1 Required 2 Calculate the estimated Inventory at the end of November, assuming a gross profit ratio of 40% Beginning inventory Plus N urchases Frentin Cost of goods avbe for sale Lost Cost of goods sold LES con of gods sold Estimated cost of invertory before Lesti danninen on Required 2 > < Prev 3 ota 10 Type here to search

Answer 1

1	Cost of beginning Inventory		$      58,900
Add:	Net Purchase		$   1,08,000
Add:	Freight on purchase		$         3,400
	Cost of goods available for sale		$   1,70,300
Less:	Cost of goods sold:
	Net Sales	$         1,91,000
Less:	Estimated Gross Profit (@40%)	$           -76,400
	Estimated Cost of goods sold		$   1,14,600
	Estimated cost of Inventory before theft		$      55,700
Less:	Inventory stolen		$      10,000
	Estimated Cost of ending Inventory		$      45,700
2	Cost of beginning Inventory		$      58,900
Add:	Net Purchase		$   1,08,000
Add:	Freight on purchase		$         3,400
	Cost of goods available for sale		$   1,70,300
Less:	Cost of goods sold:
	Net Sales	$         1,91,000
Less:	Estimated Gross Profit [($187000/1.6)*.6]	$           -71,625
	Estimated Cost of goods sold		$   1,19,375
	Estimated cost of Inventory before theft		$      50,925
Less:	Inventory stolen		$      10,000
	Estimated Cost of ending Inventory		$      40,925