Vaughn Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $162,100 Purchases (gross) 691,300 Freight-in 30,800 Sales revenue 1,041,700 Sales returns 65,900 Purchase discounts 12,500 (a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. The estimated inventory at May 31 $
Vaughn Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $162,100 Purchases (gross) 691,300 Freight-in 30,800 Sales revenue 1,041,700 Sales returns 65,900 Purchase discounts 12,500 (a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. The estimated inventory at May 31 $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Vaughn Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information
for the month of May.
Inventory, May 1
$162,100
Purchases (gross)
691,300
Freight-in
30,800
Sales revenue
1,041,700
Sales returns
65,900
Purchase discounts
12,500
(a)
Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales.
The estimated inventory at May 31
$
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