# Question

Wayward Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Waywardâ€™s gross profit rate averages 34%. The following information for the first quarter is available from its records.
January 1 beginning inventory . . . . . . . . . \$ 302,580
Cost of goods purchased . . . . . . . . . . . . 941,040
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,211,160
Sales returns . . . . . . . . . . . . . . . . . . . . . . 8,410

Required
Use the gross profit method to estimate the companyâ€™s first quarter endinginventory.

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