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 the blank 4c1a98f55fecf8b_9 Ratio of cost to retail price: fill in the blank 4c1a98f55fecf8b_10% fill in the blank 4c1a98f55fecf8b_12 $fill in the blank 4c1a98f55fecf8b_14 $fill in the blank 4c1a98f55fecf8b_16 2a. Estimate the cost of the merchandise inventory of Ranchworks Co. on November 30 by the gross profit method, presenting details of the computations. Ranchworks Co. Cost of the Merchandise Inventory November 30 Cost $fill in the blank a1e8bd0b9f8d053_2 fill in the blank a1e8bd0b9f8d053_4 $fill in the blank a1e8bd0b9f8d053_6 $fill in the blank a1e8bd0b9f8d053_8 fill in the blank a1e8bd0b9f8d053_10 fill in the blank a1e8bd0b9f8d053_12 $fill in the blank a1e8bd0b9f8d053_14 2b. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that $160,900 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during March thru November? $fill in the blank

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 the blank 4c1a98f55fecf8b_9 Ratio of cost to retail price: fill in the blank 4c1a98f55fecf8b_10% fill in the blank 4c1a98f55fecf8b_12 $fill in the blank 4c1a98f55fecf8b_14 $fill in the blank 4c1a98f55fecf8b_16 2a. Estimate the cost of the merchandise inventory of Ranchworks Co. on November 30 by the gross profit method, presenting details of the computations. Ranchworks Co. Cost of the Merchandise Inventory November 30 Cost $fill in the blank a1e8bd0b9f8d053_2 fill in the blank a1e8bd0b9f8d053_4 $fill in the blank a1e8bd0b9f8d053_6 $fill in the blank a1e8bd0b9f8d053_8 fill in the blank a1e8bd0b9f8d053_10 fill in the blank a1e8bd0b9f8d053_12 $fill in the blank a1e8bd0b9f8d053_14 2b. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that $160,900 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during March thru November? $fill in the blank

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

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 the blank 4c1a98f55fecf8b_9
Ratio of cost to retail price:	fill in the blank 4c1a98f55fecf8b_10%
			fill in the blank 4c1a98f55fecf8b_12
			$fill in the blank 4c1a98f55fecf8b_14
			$fill in the blank 4c1a98f55fecf8b_16

2a. Estimate the cost of the merchandise inventory of Ranchworks Co. on November 30 by the gross profit method, presenting details of the computations.

Ranchworks Co.
Cost of the Merchandise Inventory
November 30
		Cost
		$fill in the blank a1e8bd0b9f8d053_2
		fill in the blank a1e8bd0b9f8d053_4
		$fill in the blank a1e8bd0b9f8d053_6
	$fill in the blank a1e8bd0b9f8d053_8
	fill in the blank a1e8bd0b9f8d053_10
		fill in the blank a1e8bd0b9f8d053_12
		$fill in the blank a1e8bd0b9f8d053_14

2b. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that $160,900 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during March thru November?
$fill in the blank

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.