The August 1 inventory of Hawkins Company had a cost of $180,000 and a retail value of
Question:
The August 1 inventory of Hawkins Company had a cost of $180,000 and a retail value of $250,000. During August, merchandise was purchased for $202,260 and marked to sell for $304,000. August sales totaled $272,000.
INSTRUCTIONS
1. Compute the retail value of the ending inventory as of August 31.
2. Compute the approximate cost of the ending inventory.
3. Compute the cost of goods sold during August.
Analyze: What is the amount of estimated gross profit on sales for the month ending August 31?
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
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Step by Step Answer:
Estimated Inventory Cost Retail Beginning Inventory August 1 180000 25000000 Purchases 202260 ...View the full answer
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Mehwish Aziz
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Related Book For 
College Accounting Chapters 1-30
ISBN: 978-1259631115
15th edition
Authors: John Price, M. David Haddock, Michael Farina
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