please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Problem 5-23A (Static) Estimating ending inventory: gross margin method LO 5-4Toyland wishes to produce quarterly financial statements, but it takes a physical count of inventory only at year-end. The followinghistorical data were taken from the Year 1 and Year 2 accounting records.Year 1Net salesYear 2$ 190,00089,200$ 150,00076,000Cost of goods soldAt the end of the first quarter of Year 3, Toyland's ledger had the following account balances.SalesPurchasesBeginning inventory 1/1/Year 332,100Ending inventory 3/31/Year 316,000Based on purchases and sales, the Toyland accountant thinks inventory is low.RequiredUsing the information provided, estimate the following for the first quarter of Year 3:a. Cost of goods sold. (Use the average cost of goods sold percentage.) (Round your intermediate percentage values to 1 decimalplace and final answer to nearest whole dollar amount.)b. Ending inventory at March 31 based on the historical cost of goods sold percentage.c. Inventory shortagea.Cost of goods soldb. Estimated ending inventoryC.Estimated inventory shortage$ 210,00090,000

The inventory shortage can be estimated on the basis of difference between actual ending inventory…

Problem 5-23A (Static) Estimating ending inventory: gross margin method LO 5-4 Toyland wishes to produce quarterly financial statements, but it takes a physical count of inventory only at year-end. The following historical data were taken from the Year 1 and Year 2 accounting records. Year 1 Net sales Cost of goods sold $ 150,000 76,000 At the end of the first quarter of Year 3, Toyland's ledger had the following account balances. Year 2 $ 190,000 89,200 Sales Purchases Beginning inventory 1/1/Year 3 Ending inventory 3/31/Year 3 Based on purchases and sales, the Toyland accountant thinks inventory is low. $ 210,000 90,000 32,100 16,000 Required Using the information provided, estimate the following for the first quarter of Year 3: a. Cost of goods sold. (Use the average cost of goods sold percentage.) (Round your intermediate percentage values to 1 decimal place and final answer to nearest whole dollar amount.) a. Cost of goods sold b. Estimated ending inventory C. Estimated inventory shortage b. Ending inventory at March 31 based on the historical cost of goods sold percentage. c. Inventory shortage

Problem 5-23A (Static) Estimating ending inventory: gross margin method LO 5-4 Toyland wishes to produce quarterly financial statements, but it takes a physical count of inventory only at year-end. The following historical data were taken from the Year 1 and Year 2 accounting records. Year 1 Net sales Cost of goods sold $ 150,000 76,000 At the end of the first quarter of Year 3, Toyland's ledger had the following account balances. Year 2 $ 190,000 89,200 Sales Purchases Beginning inventory 1/1/Year 3 Ending inventory 3/31/Year 3 Based on purchases and sales, the Toyland accountant thinks inventory is low. $ 210,000 90,000 32,100 16,000 Required Using the information provided, estimate the following for the first quarter of Year 3: a. Cost of goods sold. (Use the average cost of goods sold percentage.) (Round your intermediate percentage values to 1 decimal place and final answer to nearest whole dollar amount.) a. Cost of goods sold b. Estimated ending inventory C. Estimated inventory shortage b. Ending inventory at March 31 based on the historical cost of goods sold percentage. c. Inventory shortage

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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