Gross profit method Based on the following data, estimate the cost of the ending merchandise inventory: sales $9,250,000 estimated gross profit rate 36% Beginning merchandise inventory $ 180,000 Purchases (net) 5,945,000 Merchandise available for sale $6,125,000

Gross profit method Based on the following data, estimate the cost of the ending merchandise inventory: sales $9,250,000 estimated gross profit rate 36% Beginning merchandise inventory $ 180,000 Purchases (net) 5,945,000 Merchandise available for sale $6,125,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Jones Co. uses the retail inventory method. Given the following data, what's the ending inventory at…

A: Sales at retail: $80,000Net purchases at cost: $41,200Net purchases at retail: $66,800Beginning…

Q: Based on the information that follows, prepare the cost of goods sold section of a multiple-step…

A: Cost of goods manufactured means the cost incurred for manufacturing the finished product. Cost of…

Q: Cost of Goods Sold Section, Multiple-Step Income Statement Based on the information that follows,…

A: The income statement is one of the important financial statements of the business. It records the…

Q: Current Attempt in Progress Presented below is information related to Kingbird Company. Cost Retail…

A: Lower of Cost or Market (LCM) is an accounting principle used to value inventory at the lower of its…

Q: What is the cost of goods sold? SHIN Industries uses the average cost approach to- account for its…

A: The cost of goods sold is calculated as cost of goods available for sale minus cost of ending…

Q: During the current year, merchandise is sold for $732,000. The cost of the goods sold is $512,400.…

A: Gross profit percentage is calculated by dividing gross profit by net sales revenue. Gross profit…

Q: Orange Co. uses the retail inventory method to estimate its inventory for interim statement…

A: Inventory is the current asset of the company that includes the raw materials which are required to…

Q: Cost of Goods Sold Section, Multiple-Step Income Statement Based on the information that follows,…

A: Definition: Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a…

Q: On the basis of the following data, estimate the cost of the inventory at June 30 by the retail…

A: The retail technique calculates a store's closing inventory balance by comparing the cost of…

Q: Beginning inventory 74,000. Cost of goods purchased 530, 900. Cost of goods available for sale…

A: Inventory turnover is the ratio between the cost of goods sold and average inventory. It is…

Q: Calculate the cost of goods sold dollar value for A65 Company for the month, considering the…

A: LIFO means last in first out where as FIFO means first in first out. Inventory and cost of goods…

Q: Perform a vertical analysis for the entry "Gross Sales" on the portion of an income statement shown…

A: Vertical analysis of an income statement is a financial analysis technique that involves expressing…

Q: Cost of goods sold section, multiple step and come statement based on the information that follows,…

A: An income statement is a financial report that indicates how prosperous the company was during a…

Q: Gross profit , Ending inventory , Cost of goods sold under Lifo.

A: Formula: Gross profit = Sales - cost of goods sold.

Q: Presented below is information related to Cullumber Corporation for the current year. Beginning…

A: The gross profit is calculated as the difference between sales and cost of goods sold. The ending…

Q: What is the estimate of ending inventory using the dollar-value LIFO retail method?

A: Beginning inventory layer at base year retail = Beginning inventory at retail ÷ Base cost index…

Q: Given the following: Numberpurchased Costper unit Total January 1 inventory 40 $4 $160…

A: Finished goods inventory: These inventories are completely ready for sale after the completion of…

Q: Using Average - perpetual, how much is the cost of ending inventory per unit? Using Average -…

A: Under average cost method of inventory, average cost per unit of inventory is used for calculation…

Q: Based on the following data, estimate the cost of ending merchandise inventory using the gross…

A: Cost of goods sold = Sales (net) - gross profit (35% of sales) Cost of goods sold = $729,000 -…

Q: Snyder’s cost of goods sold using the average-cost method would be:a. $1,725.b. $6,500.c. $7,475.d.…

A: Average cost method is a method of pricing issue of material. Under average cost method it is…

Q: Gross profit method Based on the following data, estimate the cost of the ending inventory: Sales…

A: Cost of Ending Inventory - Cost of Ending Inventory is the inventory left and unsold in the year.…

Q: Data Table Sales 24 90,000 S 104,000 $ 65,600 (f) Sales Returns and Allowances 920 (b) 1,610 840…

A: Different given values are to be used to find the required data.

Q: SHIN Industries uses the average cost approach to account for its inventory. For the current year,…

A: Average Cost Method: This approach allocates a cost to inventory items based on the overall cost of…

Q: Find the gross margin percent with the following figures: Round to 2 decimal points. Net sales…

A: GROSS MARGIN Gross margin is the ratio between Gross Profit & Net Sales Revenue. Gross Profit is…

Q: s the cost of goods sold? 5,387,500

A: Cost of goods sold refers to the expenses involved while the goods or services provided by the…

Q: What is the cost of goods sold?

A: Retail inventory method refers to an accounting method which is used by the companies to compute the…

Q: Cost of Goods Sold Section, Multiple-Step Income Statement Based on the information that follows,…

A: Income statement: When all the costs and expenses are subtracted one by one from the sale, then if…

Q: Inventory, January 1 Purchases Markups (net) Markdowns (net) Sales Required: 1. Compute the ending…

A: Inventory means the material in which the business deals. inventory can be raw material , work in…

Q: Assuming that Headland Inc. uses the conventional retail inventory method, compute the cost of its…

A: It is a method for calculating ending inventory based on the ratio of amount of goods for sale at…

Q: The following information is provided: Beginning inventory $64,000 Purchases 128,000 Purchase…

A: Formula: Net Purchases = Purchases - Purchase returns and allowances - Purchase discounts

Q: Calculate estimated cost of ending inventory using the gross profit method: Gross profit on sales…

A: Cost of goods sold = sales - sales x gross profit ratio = 27000-27000*40% = $16200

Q: Given the following: Number purchased Cost per unit Total January 1 inventory 30 $ 5 $…

A: LIFO: LIFO stands for Last-In, First-Out. In this method inventory purchased at last will be sold…

Q: 19. Using the information below, calculate gross profit for the period: Sales revenues for the…

A: The gross profit is computed by deducting the cost of goods sold from the sales revenue. The cost of…

Q: Beginning inventory. Net purchases Net markups Net markdowns Net sales. Beginning inventory Net…

A: LIFO is last in first out method means inventory bought last is sold first.Inventory means the…

Q: Calculate cost of ending inventory using the retail method: (Round your answer to the nearest cent.)…

A: For calculation of ending inventory, we will use the following formula: Ending inventory = Opening…

Q: Given the following, calculate the estimated cost of ending inventory using the gross profit method.…

A: Ending inventory = Cost of goods available for sale - Cost of goods sold Cost of goods sold = Sales…

Q: Cost of Goods Gross Sales Net Ending Profit Beg Inventory Purchases Inventory Net Sales returns…

A: Formula: Net sales = Sales - Sales returns

Q: Using the gross profit method with the following cost data, estimate the cost of ending inventory.…

A: Ending inventory is the value of inventory remaining unsold at the end of the period. The inventory…

Q: Cost of Gross Sales Goods Sold Profit (Loss) Net Ending Beg Inventory Purchases Inventory Net Sales…

A: Formulas: Gross profit = Net sales - Cost of goods sold

Q: Ayayai Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: COST OF GOODS SOLDCost of Goods Sold States the Amount of Cost Included in the Number of Units Sold…

Q: Computing Net Sales Based on the following information, compute net sales. Gross sales $3,860…

A: Net sales = Gross sales - Sales returns and allowances - Sales discounts

Q: ABC Company had the following purchases and sales information: Purchases Sales January: February: 20…

A: Definition: Weighted-average cost method: Under the average cost method inventories are priced at…

Q: Calculate inventory turnover at cost (to nearest hundredth, format as 1.23 that's it, it's a ratio):…

A: Inventory turnover is calculated as ratio of cost of goods sold and average inventory

Q: If the cost of goods available for sale equals $116,029, calculate the cost of goods sold using the…

A: COST OF GOODS SOLD Cost of Goods Sold is the Sum of Direct Cost & Manufacturing Cost of…

Question

Gross profit method

Based on the following data, estimate the cost of the ending merchandise inventory:

sales	$9,250,000
estimated gross profit rate	36%
Beginning merchandise inventory	$ 180,000
Purchases (net)	5,945,000
Merchandise available for sale	$6,125,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

How much is the Net Purchases? how much is the Net Cost of Goods Purchased? how much is the Cost of Sales?
Computing Net Sales Based on the following information, compute net sales. Gross sales $3,780 Sales returns and allowances 410 Sales discounts 80 Net sales:
Given the information below, what is the gross profit? Sales revenue Accounts receivable Ending inventory Cost of goods sold Sales returns Multiple Choice $76,000 $197,000 $79,000 $106,000 $ 345,000 60,000 118,000 239,000 30,000
Using the gross profit method with the following cost data, estimate the cost of ending inventory. Sales Estimated gross profit rate Beginning Inventory Purchases a. $363,000 b. $75,000 Oc$297,000 d. $57,000 $660,000 45% $75,000 $345,000
please dont provide answer in mage format thank you
Consider the following information: Units Cost per unit Total costs Goods in inventory at start of year 1,600 $1.92 $3,072 Purchases, quarter 1 800 $1.40 $1,120 Purchases, quarter 2 1,000 $1.60 $1,600 Purchases, quarter 3 1,200 $1.80 $2,160 Purchases, quarter 4 800 $2.00 $1,600 5,400 $9,552 Goods sold during the year: 3000 units Using the weighted-average-cost method, the value of ending inventory is:
The following data concerning the retail inventory method are taken from the financial records of GRACE Company. Cost Retail Beginning inventory P 49,000 P 70,000 Purchases 224,000 320,000 Freight-in 6,000 Net markups 20,000 Net markdowns 14,000 Sales 336,000 Sales returns 18,000 What is the ending inventory at retail?
Using the information below, calculate Gross Profit: Sales Revenue $5,000 Sales Discounts $664 Sales Returns and Allowances $357 Cost of Goods Sold $1,306 Inventory $1,451
Calculate cost of goods sold using the following information under the LIFO method of inventory: Beginning Inventory 12/1 Purchased 12/10 Purchased 12/15 Sold 12/25 $112,500 $200,000 $175,000 $62,500 2,500 units at $20 per unit 3,000 units at $25 per unit $2,500 units at $30 per unit $4,000 units for $50 each
Calculate the correct gross profit for 20xx
Analyze and compute for the Cost of Goods Sold and Net purchase: Data given are the following: Merchandise Inventory, Beginning 100,000 Purchases 250,000 Purchases returns and allowances 5,000 Purchases returns and allowances 2,000 Net purchases Add: Freight in 6,000 Cost of goods purchased 249.000 Cost of goods available for sale 349,000 Merchandise Inventory, Ending 118,570 COST OF GOODS SOLD
Please do not give image format