Retail Method; Gross Profit MethodSelected data on merchandise inventory, purchases, and sales for Celebrity Tan and Ranchworks Co. are asfollows:CostRetailCelebrity TanMerchandise inventory, August 1$354,000$520,000Transactions during August:Purchases (net)Sales4,066,0005,980,0006,152,000Ranchworks Co.Merchandise inventory, March 1$285,000Transactions during March through November:Purchases (net)3,786,000Sales5,915,000Estimated gross profit rate35% 1. Determine the estimated cost of the merchandise inventory of Celebrity Tan on August 28 by the retailmethod, presenting details of the computations.Celebrity TanCost of the Merchandise InventoryAugust 31Cost$$Ratio of cost to retail price:%Retail2a. Estimate the cost of the merchandise inventory of Ranchworks Co. on November 30 by the gross profitmethod, presenting details of the computations.Ranchworks Co.Cost of the Merchandise InventoryNovember 30ACost$$2b. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that $212,700 ofmerchandise was on hand. What was the estimated loss of inventory due to theft or damage during March thruNovember?$

1.Calculating cost to retail ratioCostRetailCost to retail ratioMerchandise…

Retail Method; Gross Profit Method Selected data on merchandise inventory, purchases, and sales for Celebrity Tan and Ranchworks Co. are as follows: Cost Retail Celebrity Tan Merchandise inventory, August 1 $354,000 $520,000 Transactions during August: Purchases (net) Sales 4,066,000 5,980,000 6,152,000 Ranchworks Co. Merchandise inventory, March 1 $285,000 Transactions during March through November: Purchases (net) 3,786,000 Sales 5,915,000 Estimated gross profit rate 35%

Retail Method; Gross Profit Method Selected data on merchandise inventory, purchases, and sales for Celebrity Tan and Ranchworks Co. are as follows: Cost Retail Celebrity Tan Merchandise inventory, August 1 $354,000 $520,000 Transactions during August: Purchases (net) Sales 4,066,000 5,980,000 6,152,000 Ranchworks Co. Merchandise inventory, March 1 $285,000 Transactions during March through November: Purchases (net) 3,786,000 Sales 5,915,000 Estimated gross profit rate 35%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Anderson's Department Store has the following data for inventory, purchases, and sales of merchandise for December: Activity Units Purchase Price (per unit) Sale Price (per unit) Beginning inventory 10 $8.00 Purchase 1, Dec. 2 22 8.80 Purchase 2, Dec. 5 26 9.05 Sale 1, Dec. 7 19 $20.00 Sale 2, Dec. 10 25 20.00 Purchase 3, Dec. 12 12 9.80 Sale 3, Dec. 14 20 20.00 Anderson's uses a perpetual inventory system. All purchases and sales were for cash. 3. Compute cost of goods sold and the cost of ending inventory using the average cost method. (Note: Use four decimal places for per-unit calculations.) Round your answers to the nearest cent. Cost of goods sold $fill in the blank b442affb1fd1044_5 Cost of ending inventory $fill in the blank b442affb1fd1044_6 4. Prepare the journal entries to record these transactions assuming Anderson chooses to use the FIFO method. If required, round your answers to the…
Question Content Area Based on the following data for the current year, what is the number of days' sales in inventory? Assume 365 days a year. Sales on account during year $575,757 Cost of merchandise sold during year 193,428 Accounts receivable, beginning of year 43,481 Accounts receivable, end of year 51,054 Merchandise inventory, beginning of year 32,544 Merchandise inventory, end of year 43,018 Round your intermediate calculations to the nearest dollar. When required, round your answer to the whole number.
Selected data on merchandise inventory, purchases, and sales for Celebrity Tan and Ranchworks Co. are as follows: Cost Retail Celebrity Tan Merchandise inventory, August 1 $248,000 $344,000 Transactions during August: Purchases (net) 2,848,000 3,956,000 Sales 4,070,000 Ranchworks Co. Merchandise inventory, March 1 $215,000 Transactions during March through November: Purchases (net) 2,863,000 Sales 4,472,000 Estimated gross profit rate 35% Required: 1. Determine the estimated cost of the merchandise inventory of Celebrity Tan on August 28 by the retail method, presenting details of the computations. Celebrity Tan Cost of the Merchandise Inventory August 31 Cost Retail $fill in the blank 4c1a98f55fecf8b_2 $fill in the blank 4c1a98f55fecf8b_3 fill in the blank 4c1a98f55fecf8b_5 fill in the blank 4c1a98f55fecf8b_6 $fill in the blank 4c1a98f55fecf8b_8 $fill in…
Calculate using the gross profit method for the following: Gross profit on sales: 47% Beginning inventory on July 1: $49,009 Net purchase: $18,252 Net sales at retail for July: $14,400 Estimated ending inventory
Based on the following data, determine the cost of merchandise sold for July: Increase in estimated returns inventory $22,000 Merchandise inventory, July 1 36,700 Merchandise inventory, July 31 70,500 Purchases 733,900 Purchases returns and allowances 25,000 Purchases discounts 14,700 Freight in 10,300
Selected data on inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows: Retail Celebrity Tan Co. Inventory, August 1 Transactions during August: Purchases (net) Sales Ranchworks Co. Inventory, March 1 Transactions during March through November: Purchases (net) Sales Estimated gross profit rate Required: Celebrity Tan Co. Estimated Cost of Inventory August 31 Ratio Line Item Description Inventory, August 1✔ ✔ Ratio of cost to retail price: Feedback ►Check My Work 1. Determine the estimated cost of the inventory of Celebrity Tan Co. on August 31 by the retail method, presenting details of the computations. For those boxes in which you must enter subtracted or negative numbers use a minus sign. % Ranchworks Co. Estimated Cost of Inventory November 30 Line Item Description Cost Cost Cost $300,000 $575,000 Cost 2,021,900 3,170,000 3,250,000 $880,000 9,500,000 15,800,000 38% 2a. Estimate the cost of the inventory of Ranchworks Co. on November 30 by the gross…
Question Content Area Based on the following data for the current year, what is the inventory turnover (rounded to one decimal place)? Sales on account during year $598,636 Cost of merchandise sold during year 212,753 Accounts receivable, beginning of year 44,419 Accounts receivable, end of year 53,126 Merchandise inventory, beginning of year 32,158 Merchandise inventory, end of year 39,584
Weighted Average Cost Flow Method Under Perpetual Inventory System The following units of a particular item were available for sale during the calendar year: Jan. 1 Inventory 4,000 units at $20 Apr. 19 Sale 2,500 units June 30 Purchase 6,000 units at $24 Sept. 2 Sale 4,500 units Nov. 15 Purchase 1,000 units at $25 The firm uses the weighted average cost method with a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale. Present the data in the form illustrated in Exhibit 5. Round unit cost to two decimal places, if necessary. Schedule of Cost of Goods SoldWeighted Average Cost Flow Method Purchases Cost of Goods Sold Inventory Date Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Quantity Unit Cost Total Cost Jan. 1 fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Apr. 19 fill in the blank 4 $fill in the blank 5 $fill in the blank 6 fill in the blank 7…
Multiple-Step Income Statement Use the following information to prepare a multiple-step income statement, including the revenue section and the cost of goods sold section, for Sauter Office Supplies for the year ended December 31, 20--. Sales $159,700 Sales Returns and Allowances 2,070 Sales Discounts 4,171 Interest Revenue 424 Merchandise Inventory, January 1, 20-- 27,500 Estimated Returns Inventory, January 1, 20-- 500 Purchases 110,000 Purchases Returns and Allowances 4,540 Purchases Discounts 2,710 Freight-In 885 Merchandise Inventory, December 31, 20-- 33,900 Estimated Returns Inventory, December 31, 20-- 1,100 Wages Expense 27,000 Supplies Expense 800 Phone Expense 900 Utilities Expense 7,000 Insurance Expense 1,200 Depreciation Expense—Equipment 3,900 Miscellaneous Expense 590 Interest Expense 4,600
Computing Gross Profit The following data were taken from the accounts of Fluter Hardware, a small retail business. Sales $120,700 Sales returns and allowances 810 Sales discounts 680 Merchandise inventory, January 1 34,800 Purchases during the period 77,000 Purchases returns and allowances during the period 3,840 Purchases discounts taken during the period 2,310 Freight-in on merchandise purchased during the period 1,390 Merchandise inventory, December 31 31,500 Determine the gross profit.
Multiple-Step Income Statement Use the following information to prepare a multiple-step income statement, including the revenue section and the cost of goods sold section, for Sauter Office Supplies for the year ended December 31, 20--. Sales $160,000 Sales Returns and Allowances 2,300 Sales Discounts 4,175 Interest Revenue 425 Merchandise Inventory, January 1, 20-- 28,400 Estimated Returns Inventory, January 1, 20-- 600 Purchases 109,000 Purchases Returns and Allowances 4,560 Purchases Discounts 2,670 Freight-In 895 Merchandise Inventory, December 31, 20-- 30,100 Estimated Returns Inventory, December 31, 20-- 900 Wages Expense 27,400 Supplies Expense 800 Phone Expense 800 Utilities Expense 8,000 Insurance Expense 1,200 Depreciation Expense—Equipment 3,900 Miscellaneous Expense 590 Interest Expense 4,700 Sauter Office Supplies Income Statement For Year Ended December 31, 20-- Revenue from sales: $ $…
Using the following information, what is the amount of gross profit? Purchases $ 30,526 Selling expense $ 769 Inventory, September 1 5,755 Inventory, September 30 10,605 Administrative expense 732 Sales 56,096 Rent revenue 984 Interest expense 1,159 $25,676 $29,932 $30,420 $1,159