Selected data on inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows:   Cost Retail Celebrity Tan Co.     Inventory, August 1 $ 300,000 $ 575,000 Transactions during August:      Purchases (net) 2,021,900 3,170,000  Sales   3,250,000       Ranchworks Co.     Inventory, March 1 $880,000   Transactions during March through November:      Purchases (net) 9,500,000    Sales 15,800,000   Estimated gross profit rate 38%       Required: 1. Determine the estimated cost of the inventory of Celebrity Tan Co. on August 31 by the retail method.* Enter all ratios as percents, rounded to one decimal place. 2. a. Estimate the cost of the inventory of Ranchworks Co. on November 30 by the gross profit method.* b. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that $369,750 of inventory was on hand. What was the estimated loss of inventory due to theft or damage during March through November?   * Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries. Amount Descriptions   Estimated cost of goods sold   Estimated gross profit   Estimated inventory, November 30   Estimated loss due to theft or damage, August   Estimated loss due to theft or damage, March 1–November 30   Inventory, August 1   Inventory, August 31, at retail   Inventory, August 31, at estimated cost   Inventory, March 1   Merchandise available for sale   Physical inventory count, August 31   Physical inventory count, November 30   Purchases for March-November (net)   Purchases in August (net)   Sales for August   Sales for March-November 1. Determine the estimated cost of the inventory of Celebrity Tan Co. on August 31 by the retail method. Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter all ratios as percents, rounded to one decimal place.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Selected data on inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows:
 
Cost
Retail
Celebrity Tan Co.    
Inventory, August 1 $ 300,000 $ 575,000
Transactions during August:    
 Purchases (net) 2,021,900 3,170,000
 Sales   3,250,000
     
Ranchworks Co.    
Inventory, March 1 $880,000  
Transactions during March through November:    
 Purchases (net) 9,500,000  
 Sales 15,800,000  
Estimated gross profit rate 38%  
 
  Required:
1. Determine the estimated cost of the inventory of Celebrity Tan Co. on August 31 by the retail method.* Enter all ratios as percents, rounded to one decimal place.
2.
a. Estimate the cost of the inventory of Ranchworks Co. on November 30 by the gross profit method.*
b. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that $369,750 of inventory was on hand. What was the estimated loss of inventory due to theft or damage during March through November?
  * Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries.
Amount Descriptions  
Estimated cost of goods sold  
Estimated gross profit  
Estimated inventory, November 30  
Estimated loss due to theft or damage, August  
Estimated loss due to theft or damage, March 1–November 30  
Inventory, August 1  
Inventory, August 31, at retail  
Inventory, August 31, at estimated cost  
Inventory, March 1  
Merchandise available for sale  
Physical inventory count, August 31  
Physical inventory count, November 30  
Purchases for March-November (net)  
Purchases in August (net)  
Sales for August  
Sales for March-November
1. Determine the estimated cost of the inventory of Celebrity Tan Co. on August 31 by the retail method. Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter all ratios as percents, rounded to one decimal place.
 
Celebrity Tan Co.
Estimated Cost af Inventary
August 31
Cost
Retail
5 Ratio of cost to retail price:
2 a Estimate the cost of the inventory of Ranchworks Co. on November 30 by the gross proft metnod. Refer to the Nst of Amount Descriptions provided for the exact wording of the answer cnoices for text entries. Enter al ratios as percents, rounded to one decimal place
Ranchworks Co.
Estimated Cost of Inventory
Navember 30
Cost
Transcribed Image Text:Celebrity Tan Co. Estimated Cost af Inventary August 31 Cost Retail 5 Ratio of cost to retail price: 2 a Estimate the cost of the inventory of Ranchworks Co. on November 30 by the gross proft metnod. Refer to the Nst of Amount Descriptions provided for the exact wording of the answer cnoices for text entries. Enter al ratios as percents, rounded to one decimal place Ranchworks Co. Estimated Cost of Inventory Navember 30 Cost
20. Assume that Ranchworks Co. took a physical inventory on November 30 and alscovered that $300,750 of inventory was on hand.
What was the estmated lass of inventary due to theft or damage during March through Navember?
Transcribed Image Text:20. Assume that Ranchworks Co. took a physical inventory on November 30 and alscovered that $300,750 of inventory was on hand. What was the estmated lass of inventary due to theft or damage during March through Navember?
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