Party Time Costumes estimates its inventory by the gross profit method. The gross profit has averaged 50%

Question:

Party Time Costumes estimates its inventory by the gross profit method. The gross profit has averaged 50% of net sales. The company's inventory records reveal the following data (amounts in thousands):

image text in transcribed

Requirements

1. Estimate the July 31 inventory; using the gross profit method.

2. Prepare the July income statement through gross profit for Party Time Costumes.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Accounting

ISBN: 9780132439602

7th Edition

Authors: Charles T. Horngren, Walter T. Harrison

See More Books

Question Posted: May 10, 2024 01:49 AM

See More Questions

Kids Costumes estimates its inventory by the gross profit method. The gross profit has averaged 39% of net sales. The companys inventory records reveal the following data: Inventory, July 1 $ 268,000...
Halloween Costumes estimates its inventory by the gross profit method. The gross profit has averaged 30% of net sales. The companys inventory records reveal the following data: Inventory, May 1 $...
Audio-Video estimates its inventory by the gross profit method when preparing monthly financial statements. For the past two years, gross profit has averaged $22 \%$ of net sales. The company's...
Pls Show the answers and explanation 5. AJD Company had a production run of 8,000 pairs of jeans during the last week of June, with the following unit costs: Final inspection revealed that 600 pairs,...
While I1 is increasing, what is the direction of the magnetic force exerted on loop 2, if any? Explain. Two wire loops are side by side, as shown. The current I1 in loop 1 is supplied by an external...
Using the legend provided, indicate which form of business entity each of the following characteristics describes. Some of the characteristics may apply to more than one form of business entity....
Peppertree Copy Center had accounts receivable of $\$ 20,000$ at the beginning of the year and $\$ 50,000$ at year-end. Revenue for the year totaled $\$ 110,000$. How much cash did Peppertree...
Sim Corporation, a 90 percent-owned subsidiary of Pal Corporation, was acquired on January 1, 2011, at a price of $45,000 in excess of underlying book value. The excess was due to goodwill. Separate...
Observe the following multi-thread safe list insertion code: typedef struct _node_t { int key; struct __node_t *next; } node_t; mutex_t m = PTHREAD_MUTEX_INITIALIZER; node t *head = NULL; int List...
Hobart Sign Company began with an inventory of 50 signs that cost a total of $\$ 1,500$. Hobart purchased and sold merchandise on account as follows: Hobart uses the FIFO cost method. Cash payments...
Lake Air Carpets' books show the following data (in thousands). In early 2009 , auditors found that the ending inventory for 2006 was understated by $\$ 8$ thousand and that the ending inventory...
Figure shows transverse acceleration ay versus time t of the point on a string at x = 0, as a wave written in the form y(x, t) = ym sin (kx ?? wt + ?) passes through that point. The scale of the...
Discuss 2 reasons why databases are essential for accounting information systems. Describe 2 concerns in using databases in AIS. Discuss what is meant by primary key and foreign key in databases. The...
A company offers three (3) products for sale: candies, ice-pops and sandwiches. The following information is available for the three products: Candies Ice-pops Sandwiches Selling price $25 $40 $80...
In order to manage working capital effectively, two competing goals-profitability and liquidity-must be balanced. A company is said to be overcapitalized if it has an excessive amount of working...
9. Write P(x) as a product of linear factors: P(x) = x+2x-5x-6; Use the fact that - 1 is a zero
Find fg , f ( x ) = x + 1 , g ( x ) = 2 x - 3
A particle of mass m moves in a circle of radius R at a constant speed v, as shown in Figure P11.15. If the motion begins at point Q at time t = 0, determine the angular momentum of the particle...
Catherine (aged 42) and Johnson (aged 45) have been married for 12 years. Johnson is a project manager of an event company at a monthly salary of $55,000 with an additional one-month salary of...

Party Time Costumes estimates its inventory by the gross profit method. The gross profit has averaged 50%

Question:

Inventory, July 1 Transactions during July: Purchases......... Purchase discounts.. Purchase returns..... Sales Sales returns... $ 360 3,700 20 10 6,430 30

Step by Step Answer:

Accounting

Students also viewed these Business questions