Gross Profit Method: Under Gross profit method, the ending inventory of a company is estimated using gross profit or gross margin percentage. Also it uses the historical percentage. Gross profit percentage is calculated by dividing the gross profit by the overall revenues of the company. This method is very useful where the company with large inventory units finds difficult for physical count of inventories and it requires simple computations. To Compute: The estimated ending inventory of Otingo Equipment Co. using gross profit method for the interim period as on March 31 s t

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Answer 1

Question

Chapter 6, Problem 10BPSB

To determine

Concept Introduction:

Gross Profit Method:

Under Gross profit method, the ending inventory of a company is estimated using gross profit or gross margin percentage. Also it uses the historical percentage. Gross profit percentage is calculated by dividing the gross profit by the overall revenues of the company.

This method is very useful where the company with large inventory units finds difficult for physical count of inventories and it requires simple computations.

To Compute:

The estimated ending inventory of Otingo Equipment Co. using gross profit method for the interim period as on March 31^s^t

Expert Solution & Answer

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Answer 2

Question

Chapter 6, Problem 10BPSB

To determine

Concept Introduction:

Gross Profit Method:

Under Gross profit method, the ending inventory of a company is estimated using gross profit or gross margin percentage. Also it uses the historical percentage. Gross profit percentage is calculated by dividing the gross profit by the overall revenues of the company.

This method is very useful where the company with large inventory units finds difficult for physical count of inventories and it requires simple computations.

To Compute:

The estimated ending inventory of Otingo Equipment Co. using gross profit method for the interim period as on March 31^s^t

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 6, Problem 10BPSB

To determine

Concept Introduction:

Gross Profit Method:

Under Gross profit method, the ending inventory of a company is estimated using gross profit or gross margin percentage. Also it uses the historical percentage. Gross profit percentage is calculated by dividing the gross profit by the overall revenues of the company.

This method is very useful where the company with large inventory units finds difficult for physical count of inventories and it requires simple computations.

To Compute:

The estimated ending inventory of Otingo Equipment Co. using gross profit method for the interim period as on March 31^s^t

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 6, Problem 10BPSB

To determine

Concept Introduction:

Gross Profit Method:

Under Gross profit method, the ending inventory of a company is estimated using gross profit or gross margin percentage. Also it uses the historical percentage. Gross profit percentage is calculated by dividing the gross profit by the overall revenues of the company.

This method is very useful where the company with large inventory units finds difficult for physical count of inventories and it requires simple computations.

To Compute:

The estimated ending inventory of Otingo Equipment Co. using gross profit method for the interim period as on March 31^s^t

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 6, Problem 10BPSB

To determine

Concept Introduction:

Gross Profit Method:

Under Gross profit method, the ending inventory of a company is estimated using gross profit or gross margin percentage. Also it uses the historical percentage. Gross profit percentage is calculated by dividing the gross profit by the overall revenues of the company.

This method is very useful where the company with large inventory units finds difficult for physical count of inventories and it requires simple computations.

To Compute:

The estimated ending inventory of Otingo Equipment Co. using gross profit method for the interim period as on March 31^s^t

Answer 6

Chapter 6, Problem 10BPSB

To determine

Concept Introduction:

Gross Profit Method:

Under Gross profit method, the ending inventory of a company is estimated using gross profit or gross margin percentage. Also it uses the historical percentage. Gross profit percentage is calculated by dividing the gross profit by the overall revenues of the company.

This method is very useful where the company with large inventory units finds difficult for physical count of inventories and it requires simple computations.

To Compute:

The estimated ending inventory of Otingo Equipment Co. using gross profit method for the interim period as on March 31^s^t

Answer 7

Chapter 6, Problem 10BPSB

To determine

Concept Introduction:

Gross Profit Method:

Under Gross profit method, the ending inventory of a company is estimated using gross profit or gross margin percentage. Also it uses the historical percentage. Gross profit percentage is calculated by dividing the gross profit by the overall revenues of the company.

This method is very useful where the company with large inventory units finds difficult for physical count of inventories and it requires simple computations.

To Compute:

The estimated ending inventory of Otingo Equipment Co. using gross profit method for the interim period as on March 31^s^t

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

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Answer 11

Ch. 6 - Prob. 1DQ Ch. 6 - Where is the amount of merchandise inventory...Ch. 6 - If costs are declining, will the LIFO or FIFO...Ch. 6 - Prob. 4DQ Ch. 6 - Prob. 5DQ Ch. 6 - Prob. 6DQ Ch. 6 - Prob. 7DQ Ch. 6 - Prob. 8DQ Ch. 6 - Prob. 9DQ Ch. 6 - Prob. 10DQ

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