Vaughn Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is
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Vaughn Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.
Inventory, May 1 | $ 167,300 | |
Purchases (gross) | 580,800 | |
Freight-in | 32,100 | |
Sales revenue | 979,300 | |
Sales returns | 73,300 | |
Purchase discounts | 11,300 |
Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales.
The estimated inventory at May31 | $enter the dollar amount of the estimated inventory at May31 |
Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost. (Round percentage of sales to 2 decimal places, e.g. 78.74% and final answer to 0 decimal places, e.g. 6,225.)
The estimated inventory at May31 | $enter the dollar amount of the estimated inventory at May31 |
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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