Company has a recent gross profit history of 60% based on cost Date available from the accounting
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Question:
| Company has a recent gross profit history of | 60% | based on cost | |
| Date available from the accounting record for 3 months ended March 31 | |||
| Inventory - Jan 1 | 350,000.00 | ||
| Purchases | 3,650,000.00 | ||
| Sales | 5,825,000.00 | ||
| Purchase return | 45,000.00 | ||
| Freight in | 60,000.00 | ||
| Purchase discounts and allowances | 80,000.00 | ||
| Sales discounts and allowances | 35,000.00 | ||
| Sales return | 70,000.00 | ||
| Physical inventory count for the period revealed that P250,000 worth of inventories is on hand. Under the gross profit method, what is the estimated cost of inventory? Under the gross profit method, what is the inventory shoartage? |
Expert Answer:
To calculate the estimated cost of inventory using the gross profit method we can use the following ... View the full answer
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