-d Tate Tasers Inc. is preparing interim financial statements for the quarter ending 31 March 20X1 and needs to estimate the value of inventory on hand at the end of the quarter. Physical inventory counts are taken only at the end of the fiscal year. The following information is available: Beginning inventory Purchases Sales Sales returns (to stock) In-bound shipping on purchases Out-bound shipping to customers HST on purchases. HST on net sales. Import duties Inventory storage costs. Ending inventory Cost of sales $ 550,000 1,050,000 2,100,000 The average gross margin ratio is 30%. Required: Using the gross margin method, determine the cost of ending inventory and the cost of sales for the quarter. $ 282,000 X $ 1,428,000 60,000 41,000 57,000 132,000 205,000 60,000 9,000

-d Tate Tasers Inc. is preparing interim financial statements for the quarter ending 31 March 20X1 and needs to estimate the value of inventory on hand at the end of the quarter. Physical inventory counts are taken only at the end of the fiscal year. The following information is available: Beginning inventory Purchases Sales Sales returns (to stock) In-bound shipping on purchases Out-bound shipping to customers HST on purchases. HST on net sales. Import duties Inventory storage costs. Ending inventory Cost of sales $ 550,000 1,050,000 2,100,000 The average gross margin ratio is 30%. Required: Using the gross margin method, determine the cost of ending inventory and the cost of sales for the quarter. $ 282,000 X $ 1,428,000 60,000 41,000 57,000 132,000 205,000 60,000 9,000

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Description: edTate Tasers Inc. is preparing interim financial statements for the quarter ending 31 March 20X1 and needs to estimate the value ofinventory on hand at the end of the quarter. Physical inventory counts are taken only at the end of the fiscal year.

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

ed
Tate Tasers Inc. is preparing interim financial statements for the quarter ending 31 March 20X1 and needs to estimate the value of
inventory on hand at the end of the quarter. Physical inventory counts are taken only at the end of the fiscal year. The following
information is available:
Beginning inventory
Purchases
Sales
Sales returns (to stock)
In-bound shipping on purchases
Out-bound shipping to customers
HST on purchases
HST on net sales
Import duties
Inventory storage costs
The average gross margin ratio is 30%.
Required:
Using the gross margin method, determine the cost of ending inventory and the cost of sales for the quarter.
Ending inventory
Cost of sales
$ 550,000
1,050,000
2,100,000
60,000
41,000
57,000
132,000
205,000
60,000
9,000
$ 282,000
$ 1,428,000

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