Lolita Company has the following information:Beginning Inventory$ 1,90,000Net Purchases$ 4,00,000Net Sales$ 7,70,000Gross Profit Percentage30%Lolita Company's estimated ending inventory is: (Round your finalanswer to the nearest dollar.)A. $539,000B. $590,000C. $51,000D. $359,000

Detailed explanation:Given:Beginning Inventory $ 190,000Net Purchases $ 400,000Net Sales $…

Answered: Lolita Company has the following…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 46E

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%
Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning inventory is 100,000. 2. Purchases returns of 4,000 were made. 3. Purchases of 300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of 20,000 were in transit, FOB destination, on terms of 2/10, n/30. 5. The company made sales of 640,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of 6,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory.
some expert check this details and give answer short
Blue Company has the following data for the year. Beginning inventory Net sales revenue $100,000 Net purchases $320,000 Normal gross profit rate $140,000 40% What is the estimated ending inventory? (Round your final answer to the nearest dollar.) O A. $240,000 O B. $192,000 O C. $112,000 O D. $48,000
provide correct solution in this general account query
Want answer
Subject: general account questions
The following information is available for November 2018, for Golden Company. Beginning inventory $ 80,000 Purchases 300,000 Purchase return 20,000 Sales 500,000 Sales discount 50,000 Gross profit percentage of sales Using the gross profit method, the estimated ending inventory is: 25% OA. $50,000 OB. $22,500 OC. $30,000 OD. $85,000
financial Account
Presented below is information related to Bobby Engram Company. 00Cost00 0 Retail0 Beginning inventory $058,000 $100,000 Purchases (net) 122,000 200,000 Net markups 10,345 Net markdowns 26,135 Sales revenue 186,000 Instructions a. Compute the ending inventory at retail. b. Compute a cost-to-retail percentage (round to two decimals) under the following conditions. 1. Excluding both markups and markdowns. 2. Excluding markups but including markdowns. 3. Excluding markdowns but including markups. 4. Including both markdowns and markups. c. Which of the methods in (b) above (1, 2, 3, or 4) does the following? 1. Provides the most conservative estimate of ending inventory. 2. Provides an approximation of lower-of-cost-or-market. 3. Is used in the conventional retail method. d. Compute ending inventory at lower-of-cost-or-market (round to nearest dollar). e. Compute cost of goods sold based on (d). f. Compute…
correct answer please
Linden corp. has the following information

SEE MORE QUESTIONS

Recommended textbooks for you

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

Lolita Company has the following information: Beginning Inventory $ 1,90,000 Net Purchases $ 4,00,000 Net Sales $ 7,70,000 Gross Profit Percentage 30% Lolita Company's estimated ending inventory is: (Round your final answer to the nearest dollar.) A. $539,000 B. $590,000 C. $51,000 D. $359,000