Hestor Companys records indicate the following information: Merchandise inventory, January 1, 2019 .........................................$ 550,000 Purchases, January 1
Question:
Hestor Company’s records indicate the following information:
Merchandise inventory, January 1, 2019 .........................................$ 550,000
Purchases, January 1 through December 31, 2019 .......................2,250,000
Sales, January 1 through December 31, 2019 ...............................3,000,000
On December 31, 2019, a physical inventory determined that ending inventory of $600,000 was in the warehouse. Hestor’s gross profit on sales has remained constant at 30%. Hestor suspects some of the inventory may have been taken by some new employees. At December 31, 2019, what is the estimated cost of missing inventory?
a. $100,000
c. $200,000
b. $300,000
d. $700,000
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
Step by Step Answer:
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach