Coronado Company prepares monthly financial statements and uses the gross profit method to estimate ending inventories. Historically, the company has had a 40% gross profit rate. During June, net sales amounted to $190000; the beginning inventory on June 1 was $57000; and the cost of goods purchased during June amounted to $91000. The estimated cost of Coronado Company's inventory on June 30 is ○ $34000. $76000. O $22800. O $136800.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 15EA: Shetland Company reported net income on the year-end financial statements of $125,000. However,...
icon
Related questions
Question
Coronado Company prepares monthly financial statements and uses the gross profit method to estimate ending inventories.
Historically, the company has had a 40% gross profit rate. During June, net sales amounted to $190000; the beginning inventory on
June 1 was $57000; and the cost of goods purchased during June amounted to $91000. The estimated cost of Coronado Company's
inventory on June 30 is
○ $34000.
$76000.
O $22800.
O $136800.
Transcribed Image Text:Coronado Company prepares monthly financial statements and uses the gross profit method to estimate ending inventories. Historically, the company has had a 40% gross profit rate. During June, net sales amounted to $190000; the beginning inventory on June 1 was $57000; and the cost of goods purchased during June amounted to $91000. The estimated cost of Coronado Company's inventory on June 30 is ○ $34000. $76000. O $22800. O $136800.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Century 21 Accounting General Journal
Century 21 Accounting General Journal
Accounting
ISBN:
9781337680059
Author:
Gilbertson
Publisher:
Cengage
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage