Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bramble Corporations retail store and warehouse closed for an entire weekend while the year-end inventory was counted. When the count was finished, the controller gathered

Bramble Corporations retail store and warehouse closed for an entire weekend while the year-end inventory was counted. When the count was finished, the controller gathered all the count books and information from the clerical staff, completed the ending inventory calculations, and prepared the following partial income statement for the general manager for Monday morning:

Sales $ 2,751,000
Beginning inventory $ 654,000
Purchases 1,540,000
Total goods available for sale 2,194,000
Less ending inventory 654,000
Cost of goods sold 1,540,000
Gross profit $ 1,211,000

The general manager called the controller into her office after quickly reviewing the preliminary statements. Youve made an error in the inventory, she stated. My pricing all year has been carefully controlled to provide a gross profit of 35%, and I know the sales are correct. (a) How much should the ending inventory have been?

Expected ending inventory

??

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services An Integrated Approach

Authors: Alvin Arens

13th Edition

0136084737, 9780136084730

More Books

Students also viewed these Accounting questions

Question

Define the term Treatment

Answered: 1 week ago

Question

=+ Who are the buyers/users of the products abroad?

Answered: 1 week ago