Question
Based upon the following data, estimate the cost of ending inventory using the gross profit method. Sales $697,000 Estimated gross profit rate 27% Beginning inventory
Based upon the following data, estimate the cost of ending inventory using the gross profit method.
| Sales | $697,000 |
| Estimated gross profit rate | 27% |
| Beginning inventory | $64,200 |
| Purchases (net) | 673,600 |
| Merchandise available for sale | $737,800 |
$__________
The units of Manganese Plus available for sale during the year were as follows:
| Mar. 1 | Inventory | 24 units | @ $29 | $696 |
| June 16 | Purchase | 30 units | @ $35 | 1,050 |
| Nov. 28 | Purchase | 43 units | @ $36 | 1,548 |
| 97 units | $3,294 |
There are 17 units of the product in the physical inventory at November 30. The periodic inventory system is used.
a. Determine the inventory cost by the FIFO method. $
b. Determine the inventory cost by the LIFO method. $
c. Determine the inventory cost by the average cost methods. Round answer to two decimal places. $
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
9781266566899
