Bridgeport 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**: $165,300- **Purchases (gross)**: $619,800- **Freight-in**: $30,100- **Sales revenue**: $940,100- **Sales returns**: $68,700- **Purchase discounts**: $11,600Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales.The estimated inventory at May 31: $______ **Inventory Estimation Instructions:**1. **Estimate Inventory Based on Net Sales:** - **Task:** Compute the estimated inventory at May 31. - **Assumption:** The gross profit is 25% of net sales. - **Input:** Provide the estimated inventory value in the text box labeled for May 31.2. **Reference Material:** - **eTextbook and Media:** Use this section for additional resources and clarification.3. **Estimate Inventory Based on Cost:** - **Task:** Compute the estimated inventory at May 31. - **Assumption:** The gross profit is 25% of cost. - **Instructions:** Round the percentage of sales to two decimal places (e.g., 78.74%) and the final answer to zero decimal places (e.g., 6,225). - **Input:** Provide the estimated inventory value in the text box labeled for May 31.

Name: Bridgeport Company uses the gross profit method to estimate inventory
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: Bridgeport 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**: $165,300- **Purchases (gross)**: $619,800- **Freight-in**: $30,100- **S

Calculating of inventory as a balancing figures in case of gross profit method , we need to prepare the trading account.

Business

Accounting

Bridgeport 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 $165,300 Purchases (gross) 619,800 Freight-in 30,100 Sales revenue 940,100 Sales returns 68,700 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 $4

Bridgeport 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 $165,300 Purchases (gross) 619,800 Freight-in 30,100 Sales revenue 940,100 Sales returns 68,700 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 $4

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The following information is taken from the books of Nicki Incorporated: July Beginning inventory $20,161.17 Sales Gross profit Ending inventory August $15,333.36 $115,869.88 $94,299.18 42.02% $15,333.36 42.02% $? If the purchases for August are the same as July, what is the ending inventory on August 31? a. $117,033.51 b. $52,823.81 Activ
yas.5
On July 1, the total inventory for Save-Mor Merchandisers was $614,100. Net purchases during the month were $315,900 and sales amounted to $611,400. Gross margin on sales was 63%. Estimate the cost value of the inventory as of July 31 using the gross profit method (in $). $
The Luann Company uses the periodic inventory system. The following July data are for an item in Luann's inventory: July 1 Beginning inventory 30 units @ 10 Purchased $9 per unit 50 units @ $11 per unit 15 Sold 60 units 26 Purchased 25 units @ $13 per unit Calculate the cost of goods sold for July and ending inventory at July 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods. Note: Round your cost per unit to three decimal places, if needed. Then round your final answers to the nearest dollar. A. First-in, First-out: Ending Inventory Cost of Goods Sold: B. Last-in, first-out: Ending Inventory Cost of Goods Sold: C. Weighted-average cost: Ending Inventory Cost of Goods Sold
Please do not give salutations in image format thankuh
A company reports the following: Line Item Description Amount Cost of goods sold $2,007,500 Average inventory 182,500 Determine (a) the inventory turnover and (b) the days’ sales in inventory. Round your answers to one decimal place. Assume a 365-day year. Line Item Description Answer a. Inventory turnover b. Days’ Sales in Inventory
If the estimated rate of gross profit is 30%, what is the estimated cost of the merchandise inventory September 30, based on the following data? Sep. 1 Merchandise inventory (at cost) $74,605 Sep. 1-30 Purchases, net (at cost) 182,938 Sep. 1-30 Sales 138,979 Oa. $160,258 Ob. $97,285 Oc. $54,881 Od. $41,694
Compute the average days in inventory rounded to the nearest whole day based on the following data: Sales revenue $275,000 Cost of goods sold 100,000 Beginning inventory 35,000 Ending inventory 45,000
The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Number Date Transaction of Units Per Unit Total Apr. 3 Inventory 25 $1,200 $30,000 8 Purchase 1,240 75 93,000 11 Sale 40 2,000 80,000 30 Sale 30 2,000 60,000 May 8 Purchase 60 1,260 75,600 10 Sale 50 2,000 100,000 19 Sale 20 2,000 40,000 28 Purchase 80 1,260 100,800 June 5 Sale 40 2,250 90,000 16 Sale 25 2,250 56,250 21 Purchase 35 1,264 44,240 28 Sale 44 2,250 000'66 Required: 1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the first-in, first-out method. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column.
The beginning inventory of merchandise at Rhodes Co. and data on purchases and sales for a three-month period ending June 30 are as follows: Date Transaction Numberof Units Per Unit Total Apr. 3 Inventory 66 $300 $19,800 8 Purchase 132 360 47,520 11 Sale 88 1,000 88,000 30 Sale 55 1,000 55,000 May 8 Purchase 110 400 44,000 10 Sale 66 1,000 66,000 19 Sale 33 1,000 33,000 28 Purchase 110 440 48,400 June 5 Sale 66 1,050 69,300 16 Sale 88 1,050 92,400 21 Purchase 198 480 95,040 28 Sale 99 1,050 103,950 Required: 1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER…
On July 1, the total inventory for Save-Mor Merchandisers was $614,100. Net purchases during the month were $313,900and sales amounted to $611,400. Gross margin on sales was 67%. Estimate the cost value of the inventory as of July 31 using the gross profit method (in $). $
Calculate using the gross profit method for the following: Gross profit on sales: 47% Beginning inventory on July 1: $49,009 Net purchase: $18,252 Net sales at retail for July: $14,400 Estimated ending inventory