Question

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 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 |

Answer #1

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...

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...

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
$

Henderson Company uses the gross profit method to estimate
ending inventory and cost of goods sold when preparing monthly
financial statements required by its bank. Inventory on hand at the
end of July was $122,000. The following information for the month
of August was available from company records: Purchases $ 218,000
Freight-in 5,100 Sales 349,000 Sales returns 8,900 Purchases
returns 4,200 In addition, the controller is aware of $12,000 of
inventory that was stolen during August from one of the...

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