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 |
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$ 171,100 |
| Purchases (gross) |
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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 |
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Compute the estimated inventory at May 31, assuming that the
gross profit is 25% of cost. (Round percentage of sales
to 2 decimal places, e.g. 78.74% and final answer to 0 decimal
places, e.g. 6,225.)
| The estimated inventory at May 31 |
|
$enter the dollar amount of the estimated inventory at May
31 |
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