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Question 2                                         &nbs

Question 2                                                                                                                           

The records of McCoy Company provided the following information for the year ended December 31:

                                                                                     

Jan. 1: Opening inventory                                       $ 60,200 (at cost)              

Merchandise purchased                              316,090 (at cost)       

              Sales                                                                  380,900

              Sales returns                                                        3,800

Required:

Assuming the gross profit is 38% of net sales, estimate the company's year-end inventory using the

Gross Profit Method.

Marks will be awarded for Cost of Goods Available for Sale (at cost), Net Sales, Estimated Cost of Goods

Sold, and Estimated Year-End Inventory (at cost).

Please show all calculations using the working paper on the following Working Paper

Business   Accounting   
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