Using gross profit method to estimate ending inventory. Current year sales and cost of inventory for sale are $700,000 and $540,000. Historical gross profit is 40%. What is ending inventory? Calculate the Cost of Goods Sold from the following data: Cartage outwards 8,500, Insurance 10,900, Customs duty 5,400, Purchases 58,300, Stock (opening) 3,950, Cartage inwards, 6,200, Stock (closing) 5,700, Purchases returns 1,000, Sales commissions 5,300

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter5: Inventories And Cost Of Goods Sold
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Using gross profit method to estimate ending inventory. Current year sales and cost of
inventory for sale are $700,000 and $540,000. Historical gross profit is 40%. What is ending
inventory? Calculate the Cost of Goods Sold from the following data: Cartage outwards
8,500, Insurance 10,900, Customs duty 5,400, Purchases 58,300, Stock
(opening) 3,950, Cartage inwards, 6,200, Stock (closing) 5,700, Purchases returns
1,000, Sales commissions 5,300
Transcribed Image Text:Using gross profit method to estimate ending inventory. Current year sales and cost of inventory for sale are $700,000 and $540,000. Historical gross profit is 40%. What is ending inventory? Calculate the Cost of Goods Sold from the following data: Cartage outwards 8,500, Insurance 10,900, Customs duty 5,400, Purchases 58,300, Stock (opening) 3,950, Cartage inwards, 6,200, Stock (closing) 5,700, Purchases returns 1,000, Sales commissions 5,300
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