If Carla Vista Department Store uses the gross profit method and net sales are $600,000, the gross profit rate is 30%, and cost of goods available for sale is $480,000, what is the estimated cost of ending inventory?

If Carla Vista Department Store uses the gross profit method and net sales are $600,000, the gross profit rate is 30%, and cost of goods available for sale is $480,000, what is the estimated cost of ending inventory?

Name: If Carla Vista Department Store uses the gross profit method and net s
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: If Carla Vista Department Store uses the gross profit method and net sales are $600,000, the gross profit rate is 30%, and cost of goods available for sale is $480,000, what is the estimated cost of ending inventory?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 4CE: Kulsrud Company would like to estimate the current inventory level. Using the gross profit method...

See similar textbooks

Similar questions

Kulsrud Company would like to estimate the current inventory level. Using the gross profit method and the following information, estimate the current inventory level for Kulsrud Company. Goods available for sale 100,000 Net sales 150,000 Normal gross profit as a percent of sales 40%
Assume your company uses the periodic inventory costing method, and the inventory count left out an entire warehouse of goods that were in stock at the end of the year, with a cost value of $222,000. How will this affect your net income in the current year? How will it affect next years net income?
Black Corporation uses the LIFO cost flow assumption. Each unit of its inventory has a net realizable value of 300, a normal profit margin of 35, and a current replacement cost of 250. Determine the amount per unit that should be used as the market value to apply the lower of cost or market rule to determine Blacks ending inventory.
The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Please answer
What is costs of good sold?
If net sales are $300,000, cost of goods available for sale is $280,000, and gross profit percentageis 35%, what is the amount of ending inventory?
One inventory item has a sales price of $27 and selling expenses of $8. The replacement cost of the item is $11 and the original cost was $26. If there are 2,000 units on hand, at what amount will inventory be recorded on the balance sheet?
Using the LIFO method, calculate the cost of ending inventory and cost of goods sold for Campini Corporation.
During the current year, mnerchandise is sold for $714000. The cost of the merchandise sold is $474000. What is the amount of the gross profit? Add your answer
Marzan Company uses LIFO and a perpetual inventory system for its leading product, Z. Given the historical cost of product Z is $22, the selling price of product Z is $25, costs to sell product Z are $3, the replacement cost for product Z is $21, and the normal profit margin is 40% of sales price, what is the amount that should be used to value the inventory under the lower-of-cost-or-market method? O $18 $20 $21 $22
Smith Company's inventory cost is $100. The expected sales price is $110, estimated selling costs are $6. The normal gross profit ratio is 20% of selling price. The replacement cost of the inventory is $95. Smith Company uses the LIFO inventory method so must use the lower of cost or market approach and this inventory item should be valued at Correct answer came back as $95, Id love an explanation for this. Thank you!