The estimated cost of goods sold, gross profit and ending inventory for recent three years. Given information: Inventory at the beginning amounted to $598. Purchases made were $2400. Goods returned worth $24. Goods sold prior to storm occurred are worth $3,945. Company is using gross profit method for determining inventory.

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Answer 1

Question

Chapter 10, Problem 10.12P

a.

To determine

The estimated cost of goods sold, gross profit and ending inventory for recent three years.

Given information:

Inventory at the beginning amounted to $598.

Purchases made were $2400.

Goods returned worth $24.

Goods sold prior to storm occurred are worth $3,945.

Company is using gross profit method for determining inventory.

b.

To determine

The estimated cost of goods sold, gross profit and ending inventory for recent two years.

c.

To determine

The difference based on 2-year and 3-year historical gross profit percentage.

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Zelda Manufacturing forecasts that total overhead for the current year will be $22,500,000 with 250,000 total machine hours. Year to date, the actual overhead is $10,275,000, and the actual machine hours are 110,000 hours. If Zelda Manufacturing uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is__. Determine Overapplied or Underapplied Overhead.

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Fianancial accounting question

Answer 2

Question

Chapter 10, Problem 10.12P

a.

To determine

The estimated cost of goods sold, gross profit and ending inventory for recent three years.

Given information:

Inventory at the beginning amounted to $598.

Purchases made were $2400.

Goods returned worth $24.

Goods sold prior to storm occurred are worth $3,945.

Company is using gross profit method for determining inventory.

b.

To determine

The estimated cost of goods sold, gross profit and ending inventory for recent two years.

c.

To determine

The difference based on 2-year and 3-year historical gross profit percentage.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 10, Problem 10.12P

a.

To determine

The estimated cost of goods sold, gross profit and ending inventory for recent three years.

Given information:

Inventory at the beginning amounted to $598.

Purchases made were $2400.

Goods returned worth $24.

Goods sold prior to storm occurred are worth $3,945.

Company is using gross profit method for determining inventory.

b.

To determine

The estimated cost of goods sold, gross profit and ending inventory for recent two years.

c.

To determine

The difference based on 2-year and 3-year historical gross profit percentage.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 10, Problem 10.12P

a.

To determine

The estimated cost of goods sold, gross profit and ending inventory for recent three years.

Given information:

Inventory at the beginning amounted to $598.

Purchases made were $2400.

Goods returned worth $24.

Goods sold prior to storm occurred are worth $3,945.

Company is using gross profit method for determining inventory.

b.

To determine

The estimated cost of goods sold, gross profit and ending inventory for recent two years.

c.

To determine

The difference based on 2-year and 3-year historical gross profit percentage.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 10, Problem 10.12P

a.

To determine

The estimated cost of goods sold, gross profit and ending inventory for recent three years.

Given information:

Inventory at the beginning amounted to $598.

Purchases made were $2400.

Goods returned worth $24.

Goods sold prior to storm occurred are worth $3,945.

Company is using gross profit method for determining inventory.

b.

To determine

The estimated cost of goods sold, gross profit and ending inventory for recent two years.

c.

To determine

The difference based on 2-year and 3-year historical gross profit percentage.

Answer 6

Chapter 10, Problem 10.12P

a.

To determine

The estimated cost of goods sold, gross profit and ending inventory for recent three years.

Given information:

Inventory at the beginning amounted to $598.

Purchases made were $2400.

Goods returned worth $24.

Goods sold prior to storm occurred are worth $3,945.

Company is using gross profit method for determining inventory.

Answer 7

Chapter 10, Problem 10.12P

a.

To determine

The estimated cost of goods sold, gross profit and ending inventory for recent three years.

Given information:

Inventory at the beginning amounted to $598.

Purchases made were $2400.

Goods returned worth $24.

Goods sold prior to storm occurred are worth $3,945.

Company is using gross profit method for determining inventory.

Answer 8

b.

To determine

The estimated cost of goods sold, gross profit and ending inventory for recent two years.

Answer 9

b.

To determine

The estimated cost of goods sold, gross profit and ending inventory for recent two years.

Answer 10

c.

To determine

The difference based on 2-year and 3-year historical gross profit percentage.

Answer 11

c.

To determine

The difference based on 2-year and 3-year historical gross profit percentage.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

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Solution Summary: The author explains how gross profit method provides an approximation of the ending inventory balance. The company determines its historical cost using net sales and cost of goods sold.

Concept explainers

The estimated cost of goods sold, gross profit and ending inventory for recent two years.

The difference based on 2-year and 3-year historical gross profit percentage.

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Chapter 10 Solutions