The following information pertains to the Blackwell Corporation for the six months ended September 30 of the current year: Merchandise inventory, April 1 $850,000 Purchases $4,200,000 Freight-in $320,000 Net sales $5,400,000 Gross profit is normally 30% of sales. What is the estimated amount of inventory on hand at September 30? a. $250,000 b. $970,000 c. $1,590,000 d. $3,780,000

The following information pertains to the Blackwell Corporation for the six months ended September 30 of the current year: Merchandise inventory, April 1 $850,000 Purchases $4,200,000 Freight-in $320,000 Net sales $5,400,000 Gross profit is normally 30% of sales. What is the estimated amount of inventory on hand at September 30? a. $250,000 b. $970,000 c. $1,590,000 d. $3,780,000

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

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

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Cost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 20Y8: Estimated returns of current year sales 11,600 Inventory, May 1, 20Y7 380,000 Inventory, April 30, 20Y8 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the Cost of goods sold section of the income statement for the year ended April 30, 20Y8, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 20Y8. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
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Financial Accounting
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fINANCIAL ACCOUNT
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