Calculate the estimated inventory

Reference no: EM13143544

Henderson Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly financial statements required by its bank. Inventory on hand at the end of July was $122,500. The following information for the month of August was available from company records:

Purchases:$219,000
Freight-in:$5,200
Sales:$350,000
Sales Returns:$9,000
Purchase Returns:$4,300

In addition, the controller is aware of $10,000 of inventory that was stolen during August from one of the company's warehouses. Calculate the estimated inventory at the end of August, assuming a markup on cost of 25%.

Reference no: EM13143544

Questions Cloud

Developmental researchers : Developmental Researchers no longer view the neonate as a helpless creature, but as a remarkably competent, developing human being. What do you think are the implications of this changing viewpoint for methods of child rearing and child care?

What is average debtors balance : A firm has annual credit sales of £5,000,000 and an average collection period of 52 days. What is its average debtors balance, assuming a 365 day year.

Weigh the relative importance of the industrial and market : an essay apx. 300-450 words on this topic. Weigh the relative importance of the Industrial and Market revolutions in changing the American economy. In what ways was the economy different in 1860 from what it had been in 1800? How would you explain th..

What differences in size : What differences in SIZE, COMPLEXITY or FUNCTIONING might we expect in the brains of children from undernourished, violent, boring, abandoned, secure, or enraged environments?

Calculate the estimated inventory : In addition, the controller is aware of $10,000 of inventory that was stolen during August from one of the company's warehouses. Calculate the estimated inventory at the end of August, assuming a markup on cost of 25%.

What are the implications : What are the implications of every human being we meet having a different wiring pattern?

Take the big 5 personality : Take the Big 5 Personality Inventory on p. 339 in our book. Write a 300- to 500-word summary of your type, as described by the Big 5 Inventory

Confidence interval estimate of mean undergraduate gpa : Standard deviation can be assumed known with Q=.28 What is the 95% confidence interval estimate of the mean undergraduate GPA for students admitted to the top graduate schools?

Union policy toward slavery and enslaved people : short essay apx. 300-450 words long on this topic. In 1860, the institution of slavery was firmly entrenched in the United States; by 1865, it was dead. How did this happen?

User Account

All Pages