Tate Tasers Inc. is preparing interim financial statements for the quarter ending 31 March 20X1 and needs to estimate the value of inventory on hand at the end of the quarter. Physical inventory counts are taken only at the end of the fiscal year. The following information is available: $ 400,000 900,000 1,500,000 40,000 26,000 Beginning inventory Purchases Sales Sales returns (to stock) In-bound shipping on purchases Out-bound shipping to customers HST on purchases HST on net sales Import duties Inventory storage costs 42,000 117,000 190,000 40,000 6,000 The average gross margin ratio is 30%. Required: Using the gross margin method, determine the cost of ending inventory and the cost of sales for the quarter. Ending inventory Cost of sales
Tate Tasers Inc. is preparing interim financial statements for the quarter ending 31 March 20X1 and needs to estimate the value of inventory on hand at the end of the quarter. Physical inventory counts are taken only at the end of the fiscal year. The following information is available: $ 400,000 900,000 1,500,000 40,000 26,000 Beginning inventory Purchases Sales Sales returns (to stock) In-bound shipping on purchases Out-bound shipping to customers HST on purchases HST on net sales Import duties Inventory storage costs 42,000 117,000 190,000 40,000 6,000 The average gross margin ratio is 30%. Required: Using the gross margin method, determine the cost of ending inventory and the cost of sales for the quarter. Ending inventory Cost of sales
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please giveall details correct calculation
Transcribed Image Text:Tate Tasers Inc. is preparing interim financial statements for the quarter ending 31 March 20X1 and needs to estimate the value of inventory on hand at the end of the quarter. Physical inventory counts are
taken only at the end of the fiscal year. The folowing information is available:
$ 400,000
900,000
1,500,000
40,000
26,000
Beginning inventory
Purchases
Sales
Sales returns (to stock)
In-bound shipping on purchases
Out-bound shipping to
customers
HST on purchases
HST on net sales
Import duties
Inventory storage costs
42,000
117,000
190,000
40,000
6,000
The average gross margin ratio is 30%.
Required:
Using the gross margin method, determine the cost of ending inventory and the cost of sales for the quarter.
Ending inventory
Cost of sales
0:
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