Harbor Light Supplies uses the gross profit method to estimate ending inventory and cost of goods sold for interim reporting purposes. The company's average gross profit rate is 35% of sales. The following data relate to the month of July: • Inventory cost, July 1: $30,000 Purchases during July (at cost): $80,000 • • Sales: $110,000 . Sales returns: $5,000 What is the estimated ending inventory on July 31?

Harbor Light Supplies uses the gross profit method to estimate ending inventory and cost of goods sold for interim reporting purposes. The company's average gross profit rate is 35% of sales. The following data relate to the month of July: • Inventory cost, July 1: $30,000 Purchases during July (at cost): $80,000 • • Sales: $110,000 . Sales returns: $5,000 What is the estimated ending inventory on July 31?

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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