Bill's Fine Wines began the fiscal year with inventory value of $85,000 and estimated retail price of $110,000. At the end the second quarter on June 30th, external auditors wanted to estimate the ending inventory in stock without having to do a count of all the inventory in stock. Records also indicate that up to the second quarter of the year, purchases totalled $37,100 with retail price of $55,000. Net sales up to June 30 totalled $95,000. Records show that over the past 4 years, the gross profit percentage has been approximately 44% so they decided to use this to estimate the ending inventory balanc Compute the estimated ending inventory for Bill on June 30, using: a. Gross Profit Percentage b. Retail Inventory Percentage
Bill's Fine Wines began the fiscal year with inventory value of $85,000 and estimated retail price of $110,000. At the end
the second quarter on June 30th, external auditors wanted to estimate the ending inventory in stock without having to do a
count of all the inventory in stock. Records also indicate that up to the second quarter of the year, purchases totalled
$37,100 with retail price of $55,000. Net sales up to June 30
totalled $95,000. Records show that over the past 4 years, the
gross profit percentage has been approximately 44% so they decided to use this to estimate the ending inventory balanc
Compute the estimated ending inventory for Bill on June 30, using:
a.
Gross Profit Percentage
b.
Retail Inventory Percentage
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