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...
Stanojev Co. uses a periodic inventory system and the
retail inventory method to estimate ending
inventory...
Stanojev Co. uses a periodic inventory system and the
retail inventory method to estimate ending
inventory and COGS. The following data are available for the month
of April 2020:
Cost Retail
Beginning
inventory $35,000 $89,000
Net
purchases 21,000
51,000
Net
sales 52,000
What is the estimated cost of ending inventory for April?
5.If ending inventory for the year ended December 31,
2016, is understated, this error will cause...
5.If ending inventory for the year ended December 31,
2016, is understated, this error will cause owners' equity to
be:
A.
understated at the end of 2016 and overstated at the end of
2017
B.
correctly stated at the end of 2016 and overstated at the end of
2017
C.
overstated at the end of 2016 and understated at the end of
2017
D.
understated at the end of 2016 and correctly stated at the end of
2017
6.The gross...
Selected data on inventory, purchases, and sales for Celebrity
Tan Co. and Ranchworks Co. are as...
Selected data on inventory, purchases, and sales for Celebrity
Tan Co. and Ranchworks Co. are as follows: Cost Retail Celebrity
Tan Co. Inventory, August 1 $ 300,000 $ 575,000 Transactions during
August: Purchases (net) 2,021,900 3,170,000 Sales 3,250,000
Ranchworks Co. Inventory, March 1 $880,000 Transactions during
March through November: Purchases (net) 9,500,000 Sales 15,800,000
Estimated gross profit rate 38% Required: 1. Determine the
estimated cost of the inventory of Celebrity Tan Co. on August 31
by the retail method.* Enter...
Given below is information about cost of goods sold, beginning
and ending inventories, and
average accounts...
Given below is information about cost of goods sold, beginning
and ending inventories, and
average accounts payable for Years 3, 4 and 5:
Year 3 Year 4 Year 5
Cost of Goods Sold $1,895,400 $2,079,000 $2,250,000
Beginning Inventory $1,080,000 $540,000 $1,116,000
Ending Inventory $540,000 $1,116,000 $525,600
Sales $3,510,000 $3,960,000 $4,500000
Calculate for each year the following:
(a) inventory turnover;
(b) average number of days that inventory is on hand using 360 days
in a year; and
(c) gross profit margin...
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.
Memphis Company Data: Net sales $120,000 Beginning merchandise
inventory $ 50,000 Ending merchandise inventory $ 35,000...
Memphis Company Data: Net sales $120,000 Beginning merchandise
inventory $ 50,000 Ending merchandise inventory $ 35,000 Purchases
$ 85,000 Purchase Returns $ 5,000 Freight-in $ 7,000 Operating
expenses $ 40,000 Required: Prepare the multi-step income
statement. The company uses the periodic inventory system.
Effects of an Error in Ending Inventory
Waymire Company prepared the partial income statements presented
below...
Effects of an Error in Ending Inventory
Waymire Company prepared the partial income statements presented
below for 2019 and 2018.
2019
2018
Sales revenue
$538,200
$483,700
Cost of goods sold:
Beginning
inventory
$39,300
$32,100
Purchases
343,200
292,700
Cost of goods available
for sale
382,500
324,800
Ending inventory
(46,800)
335,700
(39,300)
285,500
Gross margin
$202,500
$198,200
Operating expenses
(167,200)
(151,600)
Income before taxes
$35,300
$46,600
During 2020, Waymire's accountant discovered that ending
inventory for 2018 had been understated by $6,500.
Willie Nelson's Boots uses the conventional retail method to
estimate ending inventory. Cost data for the...
Willie Nelson's Boots uses the conventional retail method to
estimate ending inventory. Cost data for the most recent quarter is
shown below:
Cost
Retail
Beginning inventory
$48,000
$63,000
Net purchases
153,000
215,000
Net markups
22,000
Net markdowns
35,000
Net sales
221,000
To the nearest thousand, estimated ending inventory using the
conventional retail method is (Do not round intermediate
calculations):
Multiple Choice
$37,000.
$29,000.
$31,000.
$35,000.