Question

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

$

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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

$

Answer #1

1) Compute estimated inventory :

Beginning inventory | 160700 | |

Purchase | 595100 | |

Purchase discount | -11600 | |

Freight in | 28600 | |

Cost of purchase | 612100 | |

Cost of goods sold | ||

Net sales (1028100-74200) | 953900 | |

Less; Gross profit | -238475 | -715425 |

Cost of ending inventory | 57375 | |

2) Compute estimated inventory :

Beginning inventory | 160700 | |

Purchase | 595100 | |

Purchase discount | -11600 | |

Freight in | 28600 | |

Cost of purchase | 612100 | |

Cost of goods sold | ||

Net sales (1028100-74200) | 953900 | |

Less; Gross profit (953900*25/125) | -190780 | 763120 |

Cost of ending inventory | 9680 | |

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 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...

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...

Buffalo 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 $ 156,000
Purchases (gross) 663,700
Freight-in 31,500
Sales revenue 1,061,800
Sales returns 72,100
Purchase discounts 13,100
Compute the estimated inventory at May 31, assuming that the gross
profit is 25% of net sales.
Compute the estimated inventory at May 31, assuming that the
gross profit is 25% of cost.

Hornacek 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
$ 110,000
Purchases (gross)
620,000
Freight-in
32,000
Sales revenue
1,050,000
Sales returns
70,000
Purchase discounts
18,000
Instructions
(a)
Compute the estimated inventory at May 31, assuming that the
gross profit is 25% of sales.
(b)
Compute the estimated inventory at May 31, assuming that the
gross profit is 25% of cost.

Sheridan 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 $ 159,500
Purchases (gross) 593,300
Freight-in 32,900
Sales revenue 974,400
Sales returns 75,900
Purchase discounts 10,800
Compute the estimated inventory at May 31, assuming that the
gross profit is 35% of cost.

Sheridan 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 $ 159,500
Purchases (gross) 593,300 Freight-in 32,900 Sales revenue 974,400
Sales returns 75,900 Purchase discounts 10,800 Compute the
estimated inventory at May 31, assuming that the gross profit is
35% of COST. NOT NET SALES

Mark Price 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 $ 164,700
Purchases (gross) 651,400
Freight-in 31,400
Sales revenue 1,064,600
Sales returns 82,400
Purchase discounts 13,020
Compute the estimated inventory at May 31, assuming that the
gross profit is 30% of sales

Flint Company Limited, which follows ASPE, uses the gross profit
method to estimate inventory for monthly reports. Information
follows for the month of May:
Inventory, May 1
$
364,000
Purchases
730,000
Freight–in
52,000
Sales
1,270,000
Sales returns
75,100
Purchase discounts
11,100
Calculate the estimated inventory at May 31, assuming that
the markup on cost is 25%.
Estimated inventory, May 31
$

On January 1, 2020, Blossom Corporation had inventory of
$53,000. At December 31, 2020, Blossom had the following account
balances.
Freight-in
$4,900
Purchases
508,000
Purchase discounts
7,350
Purchase returns and allowances
2,100
Sales revenue
807,500
Sales discounts
5,200
Sales returns and allowances
10,400
At December 31, 2020, Blossom determines that its ending inventory
is $63,000.
Compute Blossom’s 2020 gross profit.
Gross profit
$
SHOW LIST OF ACCOUNTS
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Compute Blossom’s 2020 operating expenses if net income is
$136,000...

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