-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
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter14: Adjustments For A Merchandising Business
Section: Chapter Questions
Problem 3MC: Under the periodic inventory system, what account is debited when an estimate is made for the cost...
Related questions
Topic Video
Question

Transcribed Image Text: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
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you

College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,

Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning

Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning

College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,

Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning

Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning

Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub

Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning