The August 1 inventory of Haggett Company had a cost of $90,000 and a retail value of

Question:

The August 1 inventory of Haggett Company had a cost of $90,000 and a retail value of $125,000. During August, merchandise was purchased for $101,130 and marked to sell for $152,000. August sales totaled $136,000.

INSTRUCTIONS

1. Compute the retail value of the ending inventory as of August 31.

2. Compute the approximate cost of the ending inventory.

3. Compute the cost of goods sold during August.

Analyze:

What is the amount of estimated gross profit on sales for the month ending August 31?

Ending Inventory
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 =...