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On January 1, Willard Company had $302,580 of beginning inventory at cost. In the first quarter of the year, it purchased $1,770,000 of merchandise, returned $868,360, and paid freight charges of $39,400 on purchased merchandise, terms FOB shipping point. The company's gross profit averages 34%, and the store had $1,211,160 of sales (at retail) and $8,410 of sales returns in the first quarter of the year. Use the gross profit method to estimate its cost of inventory at the end of the first quarter. $834,685 $1,278,765 ○ $449,805 $444,254 O $831,826

On January 1, Willard Company had $302,580 of beginning inventory at cost. In the first quarter of the year, it purchased $1,770,000 of merchandise, returned $868,360, and paid freight charges of $39,400 on purchased merchandise, terms FOB shipping point. The company's gross profit averages 34%, and the store had $1,211,160 of sales (at retail) and $8,410 of sales returns in the first quarter of the year. Use the gross profit method to estimate its cost of inventory at the end of the first quarter. $834,685 $1,278,765 ○ $449,805 $444,254 O $831,826

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, Willard Company had $302,580 of beginning inventory at cost. In the first quarter of the year, it purchased $1,770,000 of merchandise, returned $868,360, and paid freight charges of $39,400 on purchased merchandise, terms FOB shipping point. The company's gross profit averages 34%, and the store had $1,211,160 of sales (at retail) and $8,410 of sales returns in the first quarter of the year. Use the gross profit method to estimate its cost of inventory at the end of the first quarter. $834,685 $1,278,765 ○ $449,805 $444,254 O $831,826
Transcribed Image Text:On January 1, Willard Company had $302,580 of beginning inventory at cost. In the first quarter of the year, it purchased $1,770,000 of merchandise, returned $868,360, and paid freight charges of $39,400 on purchased merchandise, terms FOB shipping point. The company's gross profit averages 34%, and the store had $1,211,160 of sales (at retail) and $8,410 of sales returns in the first quarter of the year. Use the gross profit method to estimate its cost of inventory at the end of the first quarter. $834,685 $1,278,765 ○ $449,805 $444,254 O $831,826
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