Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need as soon as possible. Please provide the proper calculating steps! Part 1 On January 1, The Parts Store had a $570,000 inventory at

I need as soon as possible. Please provide the proper calculating steps!
image text in transcribed
image text in transcribed
Part 1 On January 1, The Parts Store had a $570,000 inventory at cost. During the first quarter of the year, it purchased $2,500,000 of merchandise, returned $19,100, and paid freight charges on purchased merchandise totaling $33,600. During the past several years, the store's gross profit on sales has averaged 30%. Under the assumption the store had $1,920,000 af sales during the first quarter of the year, use the gross profit method to estimate its inventory at the end of the first quarter. Part 2 During 2020, Harmony Co. sold $620,000 of merchandise at marked retail price. At the end of 2020, the following information was available from its records Beginning inventory Net purchases At Cost At Retail S 127,600 S 256,800 $ 231.240 S 393.600 Part 2 During 2020. Harmony Co. sold S620.000 of merchandise at marked retail price. At the end of 2020, the following information was available from its records: Beginning inventory Net purchases At Cost At Retail $ 127,600 S 256,800 $ 231,240 S 393,600 Use the retail method to estimate Harmony's 2020 ending inventory at cost. Round all calculations to two decimal places

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

Intermediate Accounting principles and analysis

Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso

2nd Edition

471737933, 978-0471737933

More Books

Students also viewed these Accounting questions

Question

=+What criteria should managers use to manage this tradeoff?

Answered: 1 week ago

Question

Briefly explain the path-goal theory.

Answered: 1 week ago