I don't need ai answer general accounting question Atlas Distributors has sales of $420,000 and the cost of goodsavailable for sale is $336,000. If the gross profit rate is 28%, whatis the estimated cost of ending inventory using the gross profitmethod?

Step 1: Definition of Gross Profit MethodThe Gross Profit Method estimates ending inventory based on…

Answered: Atlas Distributors has sales of…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 4CE: Kulsrud Company would like to estimate the current inventory level. Using the gross profit method...

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Similar questions

Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net realizable value of 300, a normal profit margin of 35, and a current replacement cost of 250. Determine the amount per unit that should be used as the market value to apply the lower of cost or market rule to determine Blacks ending inventory.
Assume your company uses the periodic inventory costing method, and the inventory count left out an entire warehouse of goods that were in stock at the end of the year, with a cost value of $222,000. How will this affect your net income in the current year? How will it affect next years net income?
The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
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Ross Electronics has one product in its ending inventory. Per unit data consist of the following: cost, $24; replacement cost, $22; selling price, $34; selling costs, $5. The normal profit is 25% of selling price.What unit value should Ross use when applying the lower of cost or market (LCM) rule to ending inventory?
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Atlas Distributors has sales of $420,000 and the cost of goods available for sale is $336,000. If the gross profit rate is 28%, what is the estimated cost of ending inventory using the gross profit method?