Question
Estimating Inventory Using Gross Profit Method The following data are available from a company for the current year. Sales revenue $312,000 Beginning inventory 41,600 Purchases
Estimating Inventory Using Gross Profit Method
The following data are available from a company for the current year.
| Sales revenue | $312,000 |
| Beginning inventory | 41,600 |
| Purchases | 208,000 |
Required For each separate case a through e, estimate ending inventory. Note: Carry all decimals in calculations; round the final answer to the nearest dollar.
| a. Markup is 33.3% on cost. | Answer | |
| b. Markup is 60% on sales. | Answer | |
| c. Markup is 25% on cost. | Answer | |
| d. Markup is 40% on sales. | Answer | |
| e. Markup is 37% on cost. | Answer |
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Accounting For Managers Text And Cases
Authors: William J. Bruns
3rd Edition
0324291213, 978-0324291216
