The August 1 inventory of Hawkins Company had a cost of $81,000 and a retail value of $116,000. During August, merchandise was purchased for $97,710 and marked to sell for $143,000. August sales totaled $127,000. Required: 1. Compute the retail value of the ending inventory as of August 31. 2. Compute the approximate cost of the ending inventory. 3. Compute the cost of goods sold during August. Analyze: What is the amount of estimated gross profit on sales for the month ending August 31? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Analyze Compute the retail value of the ending inventory as of August 31. Beginning inventory, August 1 Purchases Total merchandise available for sale Ending inventory at retail Cost Retail

SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
Question

please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer all and in proper format

The August 1 inventory of Hawkins Company had a cost of $81,000 and a retail value of $116,000. During August, merchandise was
purchased for $97,710 and marked to sell for $143,000. August sales totaled $127,000.
Required:
1. Compute the retail value of the ending inventory as of August 31.
2. Compute the approximate cost of the ending inventory.
3. Compute the cost of goods sold during August.
Analyze:
What is the amount of estimated gross profit on sales for the month ending August 31?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Analyze
Compute the retail value of the ending inventory as of August 31.
Beginning inventory, August 1
Purchases
Total merchandise available for sale
Ending inventory at retail
Cost
Retail
Transcribed Image Text:The August 1 inventory of Hawkins Company had a cost of $81,000 and a retail value of $116,000. During August, merchandise was purchased for $97,710 and marked to sell for $143,000. August sales totaled $127,000. Required: 1. Compute the retail value of the ending inventory as of August 31. 2. Compute the approximate cost of the ending inventory. 3. Compute the cost of goods sold during August. Analyze: What is the amount of estimated gross profit on sales for the month ending August 31? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Analyze Compute the retail value of the ending inventory as of August 31. Beginning inventory, August 1 Purchases Total merchandise available for sale Ending inventory at retail Cost Retail
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