Optek company wants to prepare interim financial statements for the
Optek Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Optek’s gross profit rate averages 39%. The following information for the first quarter is available from its records.
January 1 beginning inventory . . . . . . . . . $ 312,580
Cost of goods purchased . . . . . . . . . . . . 944,040
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,391,160
Sales returns . . . . . . . . . . . . . . . . . . . . . . 8,760
Required
Use the gross profit method to estimate the company’s first-quarter ending inventory.
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