Tuesday, January 1, 2019

Based on the following data, estimate the cost of the ending merchandise inventory: Sales $9,250,000

Based on the following data, estimate the cost of the ending merchandise inventory:

Sales $9,250,000
Estimated gross profit rate 36%
Beginning merchandise inventory $  180,000
Purchases (net) 5,945,000
Merchandise available for sale $6,125,000


Answer:
Merchandise available for sale......................................................... $6,125,000
Less cost of merchandise sold [$9,250,000 × (100% – 36%)].................. 5,920,000

Estimated ending merchandise inventory.......................................... $ 205,000

No comments:

Post a Comment