This exercise reviews the relationships and computations involved with methods of estimating…


Question Description:

25

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 2. Cost of goods sold 52,000 2. Net income 12,000 2. Gross profit rate 2. 3. Cost of goods available for sale $74,000 3. Estimated cost of goods sold 60.000 3. Estimated ending inventory at cost 3. 4. Beginning inventory at cost $20,000 4. Purchases at cost 112,000 4. Purchases returns at cost 4,000 4. Net sales 200,000 4. Gross profit rate 45% 4. Estimated cost of goods sold 4. Estimated ending inventory at cost 5. Cost of goods available for sale $52,000 5. selling prices of goods for sale 18,000 5. Cost to retail ratio 6. Beginning inventory at cost $12,000 6. beginning inventory at retail 2U,UUU 6. Purchases at cost 62,100 6. Purchases at retail 94,000 6. Ending inventory at retail 17,200 6. Operating expenses 38,000 6. Cost to retail ratio 6. Estimated ending inventory at cost Instructions Fill in the missing figure(s) for each of the independent situations above.

Answer

25