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Evermore Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May
Evermore Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.
Inventory, May 1 $100,000
Purchases (gross) 700,000
Freight-in 12,500
Sales revenue 900,000
Sales returns 10,000
Purchase discounts 20,000
Compute the estimated inventory at May 31, assuming the gross profit is 33 percent of net sales.
$186,637 | ||
$125,000 | ||
$199,137 | ||
$112,500 |
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