Harris Inc., with a December 31 year-end, uses a periodic inventory system. Because its physical inventory...

  

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Harris Inc., with a December 31 year-end, uses a periodic inventory system. Because its physical inventory count takes place at year-end only, Harris estimates ending inventory for its quarterly reports using the gross profit method. The following information for the first two quarters of the year is available. Inventory, January 1 (based on physical count) $63,000 Inventory, March 31 (estimated) 28,000 82.600 Inventory, June 30 (estimated) Purchases, first quarter Purchases, second quarter Net sales, first quarter Net sales, second quarter 175,000 245.000 280,000 252,000 Required Compute the following percentages. a. Gross profit as a percentage of sales for the first quarter. Numerator / Denominator = Result / $ $ b. Gross profit as a percentage of cost for the first quarter. Numerator / Denominator = Result / $ $ $ c. Gross profit as a percentage of sales for the second quarter. Numerator / Denominator = Result / $ % $ = Check % d. Gross profit as a percentage of cost for the second quarter. Numerator / Denominator = Result / $ % % Harris Inc., with a December 31 year-end, uses a periodic inventory system. Because its physical inventory count takes place at year-end only, Harris estimates ending inventory for its quarterly reports using the gross profit method. The following information for the first two quarters of the year is available. Inventory, January 1 (based on physical count) $63,000 Inventory, March 31 (estimated) 28,000 82.600 Inventory, June 30 (estimated) Purchases, first quarter Purchases, second quarter Net sales, first quarter Net sales, second quarter 175,000 245.000 280,000 252,000 Required Compute the following percentages. a. Gross profit as a percentage of sales for the first quarter. Numerator / Denominator = Result / $ $ b. Gross profit as a percentage of cost for the first quarter. Numerator / Denominator = Result / $ $ $ c. Gross profit as a percentage of sales for the second quarter. Numerator / Denominator = Result / $ % $ = Check % d. Gross profit as a percentage of cost for the second quarter. Numerator / Denominator = Result / $ % %

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To calculate the required percentages well need to use the gross profit method The gross profit meth... View the full answer