Please provide the answer to this general accounting question with proper steps. The following information pertains to Wilson Company for the nine months endedSeptember 30:⚫ Merchandise inventory, January 1: $850,000•Purchases: $4,200,000Freight-in: $350,000Net sales: $5,500,000Gross profit is normally 30% of salesWhat is the estimated amount of inventory on hand at September 30?a. $750,000b. $1,350,000c. $1,750,000d. $2,150,000

Step 1: Detailed explanation of Gross Profit MethodThe Gross Profit Method of estimating the ending…

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 6EB: Langstons purchased $3,100 of merchandise during the month, and its monthly income statement shows a...

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On January 1, Pope Enterprises inventory was 625,000. Pope made 950,000 of net purchases during the year. On its year-end income statement, Pope reported cost of goods sold of 1,025,000. Calculate Popes December 31 ending inventory.
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Current Year Preceding Year Sales $9,700,000 $7,175,000 Beginning inventories 420,000 400,000 Cost of goods sold 5,820,000 4,305,000 Ending inventories 550,000 420,000 a. (1.) Determine for each year the inventory turnover. Round answers to one decimal place. Current year ? Preceding year ? (2). Determine for each year the number of days' sales in inventory. Assume there are 365 days in the year. Round intermediate calculations to the nearest whole dollar and final answers to one decimal place. Current year ? Preceding year ? b. What conclusions can be drawn from these data concerning the inventories? (sales volume increased faster than the inventory, resultung in an improving inventory position/inventory increased faster than sales colume, resulting in a deteriorating inventroy position/ no conclusion about the inventory position can be drawn from these data)
20.1 A business has compiled the following information for the year ended 31 October 20X2: 38 mins $ 386,200 989,000 422,700 Opening inventory Purchases Closing inventory The gross profit as a percentage of sales is always 40% Based on these figures, what is the sales revenue for the year? $952,500 $1,333,500 $1,587,500 A C $1.524.000
D3 Company marks up all merchandise at 25% of gross purchase. All purchases are made on accountwith terms of 1/10, net/60. Purchase discounts which are recorded as miscellaneous income are alwaystaken. Normally, 60% of each month’s purchases are paid for in the month of purchase, while the other40% are paid during the first 10 days of the first month after purchase. Inventories of merchandise atthe end of each month are kept at 30% of the next month’s projected cost of goods sold.Terms for sales on account are 2/10, net/30. Cash sales are not subject to discount. Fifty percent ofeach month;s sales on account are collected during the month of sale, 45% are collected in thesucceeding month and the remainder are usually uncollectible. Seventy percent of the collections in themonth of sale are subject to discount while 10% of the collections in the succeeding month are subjectto discount.Projected sales data for selected month follow:Sales on Account Gross Cash salesDecember P1,900,000…
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Suppose Domino's had cost of goods sold during the year of $290,000. Beginning merchandise inventory was K $40,000, and ending merchandise inventory was $75,000. Determine Domino's inventory turnover for the year. Round to the nearest hundredth. OA. 8.29 times per year OB. 7.25 times per year OC. 5.04 times per year OD. 3.87 times per year
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The following data are for Steve's Candy Store for January: Beginning inventory $181,000 Net sales revenue $610,000 Net purchases $530,000 Normal gross profit rate 40% What is the company's estimated ending inventory for the month? A. $244,000 B. $366,000 C. $345,000 D. $467,000
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