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

Question:

Wayman Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory. Wayman’s gross profit rate averages 35%. The following information for the first quarter is available from its records.

January 1 beginning inventory . . . . . . . . . $ 300,260

Cost of goods purchased . . . . . . . . . . . . . . . 939,050

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,191,150

Sales returns . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,450

Required

Use the gross profit method to estimate the company’s first quarter ending inventory.

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 =... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...