Question

BB Inventory $275,000; Net Sales $960,000; Purchases $465,000; Gross Profit percentage 44%. What is the estimated...

BB Inventory $275,000; Net Sales $960,000; Purchases $465,000; Gross Profit percentage 44%. What is the estimated EB Inventory using the Gross Profit Method? Optional Answers: 1. $202,400 2. $325,600 3. $422,400 4. $740,000

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

BB Inventory = $275,000

Net Sales = $960,000

Purchases = $465,000

Gross Profit percentage = 44%

Gross Profit = Net Sales x Gross Profit percentage

= 960,000 x 44%

= $422,400

Cost of goods sold = Net sales - Gross profit

= 960,000 - 422,400

= $537,600

Cost of goods sold = BB Inventory +  Purchases - EB Inventory

537,600 = 275,000 + 465,000 - EB Inventory

EB Inventory = $202,400

Estimated EB Inventory using the Gross Profit Method = $202,400

First option is correct

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Calculating Gross Profit Percentage Given Estimated Inventory The following information is available for Fox Inc. for...
Calculating Gross Profit Percentage Given Estimated Inventory The following information is available for Fox Inc. for its first quarter of 2020. Cost of goods available for sale. $352,000 Net sales $434,000 Ending inventory estimated using the gross profit method $60,800 a. Determine cost of goods sold for the first quarter of 2020. $______ b.Determine gross profit percentage used to estimate ending inventory. $________ Note: Round to the nearest whole percentage (for example, enter 20 for 20.44%).   Note: Round amount to...
Using the Gross profit method, compute estimated inventory loss based on the following information: Sales: 660,000...
Using the Gross profit method, compute estimated inventory loss based on the following information: Sales: 660,000 Purchases: 425,000 Freight in: 25,000 Beginning Inventory: 130,000 Gross Margin%: 30%
Retail Method; Gross Profit Method Selected data on merchandise inventory, purchases, and sales for Celebrity Tan...
Retail Method; Gross Profit Method Selected data on merchandise inventory, purchases, and sales for Celebrity Tan and Ranchworks Co. are as follows: Cost Retail Celebrity Tan Merchandise inventory, August 1 $404,000 $512,000 Transactions during August: Purchases (net) 4,652,000 5,888,000 Sales 6,057,000 Ranchworks Co. Merchandise inventory, March 1 $267,000 Transactions during March through November: Purchases (net) 3,544,000 Sales 5,454,000 Estimated gross profit rate 34% Required: 1. Determine the estimated cost of the merchandise inventory of Celebrity Tan on August 28 by...
Given the following, calculate the estimated cost of ending inventory using the gross profit method: Gross...
Given the following, calculate the estimated cost of ending inventory using the gross profit method: Gross profit on sales 30% Beginning inventory, January 1, 2017 $30,000.00 Net purchases $8,000.00 Net sales at retail for January $16,000.00 Complete this partial comparative balance sheet by vertical analysis. Round percents to the nearest hundredth. Column1 Column2 Column3 Column4 Column5 2016 2017 Assets amount percent amount percent Current assets: a. Cash $38,000 $35,000 b. Accounts receivable $19,000 $18,000 c.merchandise inventory $16,000 $11,000 d. prepaid...
Blossom Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below...
Blossom Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1       $ 160,700 Purchases (gross)       595,100 Freight-in       28,600 Sales revenue       1,028,100 Sales returns       74,200 Purchase discounts       11,600    Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales. The estimated inventory at May 31       $ LINK TO TEXT    Compute the...
Bakstreet Company wants to estimate inventory destroyed by flood. Its average gross profit percentage is 0.37%...
Bakstreet Company wants to estimate inventory destroyed by flood. Its average gross profit percentage is 0.37% Beginning inventory is $101,493, purchases are $514,226, purchase returns and allowances are $4,519, transportation-in is $4,654, sales are $878,409 and sales returns and allowances are $9,289. Calculate the value of the destroyed ending inventory using the gross profit method. Round numbers to the nearest dollar, if necessary.
Vaughn Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below...
Vaughn Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $ 167,300 Purchases (gross) 580,800 Freight-in 32,100 Sales revenue 979,300 Sales returns 73,300 Purchase discounts 11,300 Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales. The estimated inventory at May 31 $enter the dollar amount of the estimated inventory at May 31 Compute the estimated inventory...
lint Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below...
lint Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $ 171,100 Purchases (gross) 686,700 Freight-in 28,700 Sales revenue 1,067,400 Sales returns 63,300 Purchase discounts 11,300 Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales. The estimated inventory at May 31 $enter the dollar amount of the estimated inventory at May 31 Compute the estimated inventory...
The following information is available for October for Pharoah Company. Beginning inventory $390000 Net purchases 1130000...
The following information is available for October for Pharoah Company. Beginning inventory $390000 Net purchases 1130000 Net sales 2260000 Percentage markup on cost 66.67% A fire destroyed Pharoah’s October 31 inventory, leaving undamaged inventory with a cost of $23000. Using the gross profit method, the estimated ending inventory destroyed by fire is A)740000. B)$602667. C)$141000 . D)$579667.
Exercise 9-14 Nash Company uses the gross profit method to estimate inventory for monthly reporting purposes....
Exercise 9-14 Nash Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $ 145,400 Purchases (gross) 658,600 Freight-in 27,700 Sales revenue 990,600 Sales returns 76,300 Purchase discounts 11,900 Your answer is incorrect. Try again. Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales. The estimated inventory at May 31 $enter the dollar amount of the estimated...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT