This exercise reviews the relationships and computations involved with methods of estimating inventory.
Information relating to five different situations is as follows:
|
1. |
Net sales |
$132,000 |
|
|
Gross profit |
52,800 |
|
Gross profit rate |
|
|
|
|
|
|
|
2. |
Net sales |
$80,000 |
|
Cost of goods sold |
52,000 |
|
|
Net income |
12,000 |
|
|
Gross profit rate |
|
|
|
|
|
|
|
3. |
Cost of goods available for sale |
$74,000 |
|
Estimated cost of goods sold |
60.000 |
|
|
Estimated ending inventory at cost |
|
|
|
|
|
|
|
4. |
Beginning inventory at cost |
$20,000 |
|
Purchases at cost |
112,000 |
|
|
Purchases returns at cost |
4,000 |
|
|
Net sales |
200,000 |
|
|
Gross profit rate |
45% |
|
|
Estimated cost of goods sold |
|
|
|
Estimated ending inventory at cost |
||
|
5. |
Cost of goods available for sale |
$52,000 |
|
selling prices of goods for sale |
18,000 |
|
|
Cost to retail ratio |
|
|
|
6. |
Beginning inventory at cost |
$12,000 |
|
beginning inventory at retail |
2U,UUU |
|
|
Purchases at cost |
62,100 |
|
|
Purchases at retail |
94,000 |
|
|
Ending inventory at retail |
17,200 |
|
|
Operating expenses |
38,000 |
|
|
Cost to retail ratio |
|
|
|
Estimated ending inventory at cost |
|
Instructions
Fill in the missing figure(s) for each of the independent situations above.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
