Wayward Company wants to prepare interim financial statements for the first quarter. The company wishes to...

Transcribed Image Text:

Wayward Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Wayward's gross profit rate averages 40%. The following information for the first quarter is available from its records. Beginning inventory, January 1 Cost of goods purchased Sales Sales returns Required: $ 310,260 949,050 1,201,150 9,550 Use the gross profit method to estimate the company's first-quarter ending inventory. Beginning inventory, January 1 Net cost of goods purchased Cost of goods available for sale Estimated cost of goods sold Estimated March 31 inventory $ 310,260 949,050 $ 1,259,310 Wayward Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Wayward's gross profit rate averages 40%. The following information for the first quarter is available from its records. Beginning inventory, January 1 Cost of goods purchased Sales Sales returns Required: $ 310,260 949,050 1,201,150 9,550 Use the gross profit method to estimate the company's first-quarter ending inventory. Beginning inventory, January 1 Net cost of goods purchased Cost of goods available for sale Estimated cost of goods sold Estimated March 31 inventory $ 310,260 949,050 $ 1,259,310

Answer rating: 100% (QA)

To estimate the firstquarter ending inventory using the gross profit method we can use the following ... View the full answer