Estimate the cost of the merchandise inventory During October, the first month ofthe fiscal year, sales totaled$750,000, andmerchandisecostoftheavailable for saletotaled $680,000. Estimate the costof the merchandise inventory as ofOctober 31, based on an estimatedgross profit rate of 35%.

Explanation of Sales: Sales represents the total revenue generated from selling merchandise during…

Answered: During October, the first month of the…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 6EB: Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a...

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Bleistine Company had the following transactions for the month. Calculate the gross margin for the period for each of the following cost allocation methods, using periodic inventory updating. Assume that all units were sold for $50 each. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
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During October, the first month of the fiscal year, sales totaled $750,000, and the cost of merchandise available for sale totaled $680,000. Estimate the cost of the merchandise inventory as of October 31, based on an estimated gross profit rate of 35%. Answer
During August, the first month of the fiscal year, sales totaled $875,000 and the cost of merchandise available for sale totaled $850,000. Estimate the cost of the merchandise inventory as of August 31, based on an estimated gross profit rate of 45%.
SportsHaven had net sales of $188,000 at cost (cost of goods sold) for the month of June. The cost of inventory at the beginning of June was $144,300 and at the end of June was $62,350. Find the inventory turnover ratio at cost for June.
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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 67%. Estimate the cost value of the inventory as of July 31 using the gross profit method (in $).
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During October, the first month of the fiscal year, sales totaled $750,000, and merchandise cost of the available for sale totaled $680,000. Estimate the cost of the merchandise inventory as of October 31, based on an estimated gross profit rate of 35%.