Inventory: Inventory refers to the stock or goods which will be sold in the near future and thus is an asset for the company. It comprises of the raw materials which are yet to be processed, the stock which is still going through the process of production and it also includes completed products that are ready for sale. Thus inventory is the biggest and the important source of income and profit for the business. Gross Profit Method: The method in which the value of the closing stock is deduced by the gross profit and revenue relationship is the gross profit method. To compute: The cost of ending inventory with the use of gross profit method. Given info, First quarter The beginning inventory is $802,880. The cost of goods purchased is $2,209,636. Sales are $3,760,260. Sales return is $79,300. Gross profit is 35%.

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Answer 1

Question

Chapter 5, Problem 10PSB

To determine

Inventory:

Inventory refers to the stock or goods which will be sold in the near future and thus is an asset for the company. It comprises of the raw materials which are yet to be processed, the stock which is still going through the process of production and it also includes completed products that are ready for sale. Thus inventory is the biggest and the important source of income and profit for the business.

Gross Profit Method:

The method in which the value of the closing stock is deduced by the gross profit and revenue relationship is the gross profit method.

To compute: The cost of ending inventory with the use of gross profit method.

Given info,
First quarter
The beginning inventory is $802,880.
The cost of goods purchased is $2,209,636.
Sales are $3,760,260.
Sales return is $79,300.
Gross profit is 35%.

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Answer 2

Question

Chapter 5, Problem 10PSB

To determine

Inventory:

Inventory refers to the stock or goods which will be sold in the near future and thus is an asset for the company. It comprises of the raw materials which are yet to be processed, the stock which is still going through the process of production and it also includes completed products that are ready for sale. Thus inventory is the biggest and the important source of income and profit for the business.

Gross Profit Method:

The method in which the value of the closing stock is deduced by the gross profit and revenue relationship is the gross profit method.

To compute: The cost of ending inventory with the use of gross profit method.

Given info,
First quarter
The beginning inventory is $802,880.
The cost of goods purchased is $2,209,636.
Sales are $3,760,260.
Sales return is $79,300.
Gross profit is 35%.

Expert Solution & Answer

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Answer 3

Question

Chapter 5, Problem 10PSB

To determine

Inventory:

Inventory refers to the stock or goods which will be sold in the near future and thus is an asset for the company. It comprises of the raw materials which are yet to be processed, the stock which is still going through the process of production and it also includes completed products that are ready for sale. Thus inventory is the biggest and the important source of income and profit for the business.

Gross Profit Method:

The method in which the value of the closing stock is deduced by the gross profit and revenue relationship is the gross profit method.

To compute: The cost of ending inventory with the use of gross profit method.

Given info,
First quarter
The beginning inventory is $802,880.
The cost of goods purchased is $2,209,636.
Sales are $3,760,260.
Sales return is $79,300.
Gross profit is 35%.

Expert Solution & Answer

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Answer 4

Question

Chapter 5, Problem 10PSB

To determine

Inventory:

Inventory refers to the stock or goods which will be sold in the near future and thus is an asset for the company. It comprises of the raw materials which are yet to be processed, the stock which is still going through the process of production and it also includes completed products that are ready for sale. Thus inventory is the biggest and the important source of income and profit for the business.

Gross Profit Method:

The method in which the value of the closing stock is deduced by the gross profit and revenue relationship is the gross profit method.

To compute: The cost of ending inventory with the use of gross profit method.

Given info,
First quarter
The beginning inventory is $802,880.
The cost of goods purchased is $2,209,636.
Sales are $3,760,260.
Sales return is $79,300.
Gross profit is 35%.

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 10PSB

To determine

Inventory:

Inventory refers to the stock or goods which will be sold in the near future and thus is an asset for the company. It comprises of the raw materials which are yet to be processed, the stock which is still going through the process of production and it also includes completed products that are ready for sale. Thus inventory is the biggest and the important source of income and profit for the business.

Gross Profit Method:

The method in which the value of the closing stock is deduced by the gross profit and revenue relationship is the gross profit method.

To compute: The cost of ending inventory with the use of gross profit method.

Given info,
First quarter
The beginning inventory is $802,880.
The cost of goods purchased is $2,209,636.
Sales are $3,760,260.
Sales return is $79,300.
Gross profit is 35%.

Answer 6

Chapter 5, Problem 10PSB

To determine

Inventory:

Inventory refers to the stock or goods which will be sold in the near future and thus is an asset for the company. It comprises of the raw materials which are yet to be processed, the stock which is still going through the process of production and it also includes completed products that are ready for sale. Thus inventory is the biggest and the important source of income and profit for the business.

Gross Profit Method:

The method in which the value of the closing stock is deduced by the gross profit and revenue relationship is the gross profit method.

To compute: The cost of ending inventory with the use of gross profit method.

Given info,
First quarter
The beginning inventory is $802,880.
The cost of goods purchased is $2,209,636.
Sales are $3,760,260.
Sales return is $79,300.
Gross profit is 35%.

Answer 7

Chapter 5, Problem 10PSB

To determine

Inventory:

Inventory refers to the stock or goods which will be sold in the near future and thus is an asset for the company. It comprises of the raw materials which are yet to be processed, the stock which is still going through the process of production and it also includes completed products that are ready for sale. Thus inventory is the biggest and the important source of income and profit for the business.

Gross Profit Method:

The method in which the value of the closing stock is deduced by the gross profit and revenue relationship is the gross profit method.

To compute: The cost of ending inventory with the use of gross profit method.

Given info,
First quarter
The beginning inventory is $802,880.
The cost of goods purchased is $2,209,636.
Sales are $3,760,260.
Sales return is $79,300.
Gross profit is 35%.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 5 - Prob. 1MCQ Ch. 5 - Prob. 2MCQ Ch. 5 - Prob. 3MCQ Ch. 5 - Prob. 4MCQ Ch. 5 - Prob. 5MCQ Ch. 5 - Prob. 6MCQ Ch. 5 - Describe how costs flow inventory to cost of goods...Ch. 5 - Where is the amount of merchandise inventory...Ch. 5 - Why are incidental costs sometimes ignored in...Ch. 5 - Prob. 4DQ

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