The following data is available for Galaxy Corp. for the three months ended September 30: Beginning Inventory (July 1): $900,000 • Purchases: $3,600,000 • Freight-in: $240,000 • Sales: $5,200,000 Gross Margin: 30% of sales What is the estimated inventory balance at September 30?

The following data is available for Galaxy Corp. for the three months ended September 30: Beginning Inventory (July 1): $900,000 • Purchases: $3,600,000 • Freight-in: $240,000 • Sales: $5,200,000 Gross Margin: 30% of sales What is the estimated inventory balance at September 30?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 2RE: On January 1, Pope Enterprises inventory was 625,000. Pope made 950,000 of net purchases during the...

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Question

Please provide the accurate answer to this general accounting problem using valid techniques.

The following data is available for Galaxy Corp. for the
three months ended September 30:
Beginning Inventory (July 1): $900,000
•
Purchases: $3,600,000
•
Freight-in: $240,000
•
Sales: $5,200,000
Gross Margin: 30% of sales
What is the estimated inventory balance at September 30?

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