Estimate the ending inventory as of march
Course:- Accounting Basics
Reference No.:- EM131810931

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

Question 1 - Gross Profit Method

A fire completely destroyed all the inventory of Glisan Lumber Yard on August 5, 20--. Fortunately, the accounting records were not destroyed in the fire. The following information is provided by Glisan Lumber Yard for the time period January 1 through August 5:

Beginning inventory, January 1, 20--$116,000

Net purchases, January 1 through August 5 432,000

Net sales, January 1 through August 5720,000

Normal gross profit as a percentage of sales 40%

Required: Estimate the amount of merchandise inventory destroyed in the fire on August 5 using the gross profit method.

Question 2 - Retail Inventory Method

The following information is provided by Raynette's Pharmacy for the last quarter of its fiscal year ending on March 31, 20:

Cost Retail Inventory, start of period, January 1, 20--$34,000  $51,100  Net purchases during the period180,668  269,300  Net sales for the period261,900 


1. Estimate the ending inventory as of March 31 using the retail inventory method.

2. Estimate the cost of goods sold for the time period January 1 through March 31 using the retail inventory method.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
Someone offers to sell to you a financial contract that will pay $90 at the end of each of the next five years, plus an additional $1000 at the end of the fifth year. If the
Riodan manufactoring ratios Liquidity ratiosCurrent ratioAcid-test, or quick, ratioReceivables turnoverInventory turnoverProfitability ratiosAsset turnoverProfit marginRetu
Compute Sales Revenue, Net Sales, and Gross Profit for Campus Stop.  Compute the gross profit percentage (using the formula shown in this chapter and rounding to one decimal p
The core values for this course are integrity and excellence. Applying the values of integrity and excellence, discuss ethical considerations of accounting for business comb
Presented are a number of values taken from compound interest tables involving the same number of periods and the same rate of interest? Indicate what each of these four value
Ryan has the following capital gains and losses for 2010: $6,000 STCL, $5,000 28% gain, $2,000 25% gain, and $6,000 0%/15% gain. Which of the following is correct?
If he were to receive an equal salary at the end of each of the 5 years from 2009 to 2014, what would his equivalent annual salary be!
Caleb Samford calls you and says that his two-person S corporation was involuntarily terminated in February 2010. He asks you if they can make a new S election now, in Novem