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 10PSB

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

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Answer 2

Question

Chapter 6, Problem 10PSB

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 10PSB

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

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 6, Problem 10PSB

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

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 6, Problem 10PSB

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 10PSB

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 10PSB

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

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Answer 9

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Answer 10

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Answer 11

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